TY - JOUR
T1 - CEOs’ regulatory focus and firm internationalization
T2 - The moderating effects of CEO overconfidence, narcissism and career horizon
AU - Biru, Ashenafi
AU - Filatotchev, Igor
AU - Bruton, Garry
AU - Gilbert, David
N1 - Publisher Copyright:
© 2022 Elsevier Ltd
PY - 2022/11/23
Y1 - 2022/11/23
N2 - While the international business literature has mainly focused on the firm- or industry-level antecedents of internationalization strategies, scholars have recently advocated a greater focus on the microfoundations of firms’ strategic decisions. Building on the regulatory focus theory, this study focuses on how CEO promotion and prevention foci impact firm internationalization. Looking into dispositional and situational attributions, this study also theorizes how these factors moderate the relationship between a CEO's psychological motivations and firm internationalization. Using data from publicly traded US firms listed in the Fortune 500, the findings of this study show that a CEO's promotion focus is positively associated with the extent of a firm's internationalization, whereas a CEO's strong prevention focus limits the extent of a firm's internationalization. The findings also reveal that the relationship between a CEO's regulatory focus and the extent of a firm's internationalization is moderated by a CEO's overconfidence, narcissism, and career horizon. These findings have important research and managerial implications for firms engaged in international business.
AB - While the international business literature has mainly focused on the firm- or industry-level antecedents of internationalization strategies, scholars have recently advocated a greater focus on the microfoundations of firms’ strategic decisions. Building on the regulatory focus theory, this study focuses on how CEO promotion and prevention foci impact firm internationalization. Looking into dispositional and situational attributions, this study also theorizes how these factors moderate the relationship between a CEO's psychological motivations and firm internationalization. Using data from publicly traded US firms listed in the Fortune 500, the findings of this study show that a CEO's promotion focus is positively associated with the extent of a firm's internationalization, whereas a CEO's strong prevention focus limits the extent of a firm's internationalization. The findings also reveal that the relationship between a CEO's regulatory focus and the extent of a firm's internationalization is moderated by a CEO's overconfidence, narcissism, and career horizon. These findings have important research and managerial implications for firms engaged in international business.
KW - CEO psychology
KW - Firm internationalization
KW - Regulatory focus
KW - Strategic decision
UR - http://www.scopus.com/inward/record.url?scp=85142697198&partnerID=8YFLogxK
U2 - 10.1016/j.ibusrev.2022.102078
DO - 10.1016/j.ibusrev.2022.102078
M3 - Article
AN - SCOPUS:85142697198
SN - 0969-5931
JO - International Business Review
JF - International Business Review
M1 - 102078
ER -