Microfoundations of firm internationalization: The owner CEO effect
Date
2019
Authors
Chittoor, Raveendra
Aulakh, Preet S.
Ray, Sougata
Journal Title
Journal ISSN
Volume Title
Publisher
Global Strategy Journal
Abstract
In this paper we examine the influence of owner CEOs’ motivations and authority on the strategic risk-taking behavior of firms as reflected by their investments in foreign markets. We theorize that owner CEOs, aided by their strategic leadership, long-term orientation and less-restricted decision making powers, will facilitate their firms’ strategic decisions that are exploratory in nature and thus more risky. We further propose that the owner CEO effect is likely to differentially interact with performance aspirations and governance structures of firms in influencing internationalization. We test our predictions on a longitudinal panel data set of 226 Indian manufacturing firms over the ten-year period from 2002 to 2011 and find support for our hypotheses. We contribute to the emerging literature on microfoundations and behavioral strategy.
Description
Keywords
microfoundations, owner CEO, behavioral theory of the firn, business groups
Citation
Chittoor, R., Aulakh, P. S. & Ray, S. (2019). Microfoundations of firm internationalization: The owner CEO effect, Global Strategy Journal, 9(1), 42-65. https://doi.org/10.1002/gsj.1193.