There’s something deeply human about crossing boundaries.
For centuries, people have left the safety of their clans in search of something better: a new trade route, fertile land, greater opportunity. In business, going global is the modern equivalent of going “over the hill.”
But here’s the paradox: while the tools to access international markets have never been more available, the psychological resistance remains as strong as it was thousands of years ago.
So what’s really going on?
In this blog, we dive into the psychology behind the hesitation to expand internationally and what separates those who freeze from those who forge ahead.
Tribal Safety vs Exploratory Risk
Our brains are wired for survival. Evolutionary psychologists like Cosmides & Tooby (1992) explain that, in early human history, staying close to one’s tribe was essential to survival. That instinct remains hardwired.
Today, it manifests as a preference for the familiar. Even in a world that demands constant change, we still resist the unfamiliar because it triggers a deep, primal discomfort.
It is no different for business leaders. When contemplating a move into Japan or Germany, there’s a voice in the back of the mind whispering: Stay close. Don’t stray. Beware the lions.
And that voice isn’t entirely irrational. As Kenrick et al. (2010) suggest, our need for self-preservation often competes with our drive for exploration and self-actualisation. It’s no surprise that international expansion can feel like evolutionary disobedience.
The Fear of Embarrassment
Success at home builds confidence. But taking your business abroad means stepping into the unknown, like navigating cultural gaps, legal ambiguity, and operational blind spots.
It’s not just fear of failure. It’s fear of public failure: being misunderstood, misaligned, or humiliated.
Gelfand et al. (2011) analysed cultural “tightness” and found that countries like Japan, Singapore, and Germany have strict social norms and low tolerance for deviation. For MSMEs operating in these markets, the stakes feel higher, and the margin for error slimmer.
Shepherd & Cardon (2009) further found that, for many entrepreneurs, the fear of embarrassment outweighs the fear of financial loss. And when decisions are visible to investors and competitors, this fear becomes even more magnified.
Cognitive Overload
The brain craves efficiency. Familiar routines are processed effortlessly in autopilot mode.
But global expansion disrupts that. You’re suddenly dealing with new legal systems, pricing strategies, cultural expectations, supply chains, and the list goes on.
It’s a cognitive onslaught.
Kahneman (2011) calls this System 2 thinking – slow, effortful, and resource-intensive. While essential for complex problem-solving, it’s easy to avoid, especially when you’re already running a business at full speed.
Posen et al. (2018) build on this, showing that high-stakes decisions in complex environments (like international markets) lead to mental fatigue, which can reduce the quality of strategic thinking.
The Hero Complex
There’s a dangerous myth we encounter often: “What works here will work anywhere.”
Founders who’ve succeeded through grit and instinct often assume those same strategies will translate abroad. But that assumption can be costly.
Hayward, Shepherd & Griffin (2006) found that overconfidence can impair decision-making in unfamiliar environments, especially when leaders haven’t done their due diligence to research their target markets.
At the end of the day, boldness is valuable, but only when paired with cultural intelligence, effort, and adaptability.
Why Some Still Go Anyway
Despite all these evolutionary stop signs, some business leaders still choose to go.
Why?
Because for them, going global isn’t just about growth – it’s about taking on a challenge.
They don’t wait for the tribe to approve. They don’t fear the unknown more than they fear stagnation. And more often than not, those who dare win, while others remain on the sidelines.
Closing Thoughts
The lions are still out there.
But so is the reward.
International expansion is more than a business decision; it’s a psychological battle. And the companies that succeed are the ones that align strategy with mindset.
If you’re curious about how ready your business is to take that leap, try our Go Global Scorecard, a 25-question assessment that scores your international strategy and delivers tailored insights to help you improve your results, quickly and easily.
Because fortune still favours the bold, especially those who move with a plan.
