Scope, Speed and Rhythm: The Influence of Executive Overconfidence on the Internationalization Process

Abstract

Abstract: The decision-making mechanism of corporate internationalization process has already drawn the attention of researchers, but but so far, few of them pay attention to the influence of executive overconfidence on the scope, speed, and rhythm of corporate internationalization. Based on the upper echelons theory and the data of Chinese listed manufacturing companies from 2007 to 2016, this research analyzes the decision-making mechanism of the corporate internationalization scope, speed, and rhythm from the perspective of executive overconfidence. The result shows that (1) Enterprises with overconfident executives have a broader scope of internationalization, a faster speed of internationalization, and a more irregular rhythm of internationalization than firms whose executives are not overconfident. (2) Compared to non-state enterprises, the positive effects of executive overconfidence on internationalization speed and irregular international expansion patterns will be weakened, but the positive effects of executive overconfidence on the scope of internationalization will be enhanced in state-owned enterprises. (3) Technological resources enhance the positive effect of executive overconfidence on internationalization scope, internationalization speed, and irregular internationalization expansion pattern.

Key words: executive overconfidence, internationalization process, state-owned enterprise, technological resource

Chen Weihong, Zhong Xi, Lan Hailin, Song Tiebo. Scope, Speed and Rhythm: The Influence of Executive Overconfidence on the Internationalization Process[J]. Management Review, 2021, 33(3): 233-243.

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