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Internationalization and firm performance of SMEs: The moderating effects of CEO attributes

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  • Hsu, Wen-Tsung
  • Chen, Hsiang-Lan
  • Cheng, Chia-Yi
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    Abstract

    This paper examines the impact of CEO attributes on the internationalization–performance relationships of SMEs. Based on the upper echelons and information processing theories, we argue that CEOs play an important role in the internationalization of SMEs. Furthermore, some of the attributes of CEOs who have a greater information processing capability have positive moderating effects on the internationalization–performance relationship. Using panel data of 187 Taiwanese SMEs that expanded abroad, we find that age, educational level, international experience, and duality of the CEO have moderating effects on the relationship between internationalization and firm performance.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 48 (2013)
    Issue (Month): 1 ()
    Pages: 1-12

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    Handle: RePEc:eee:worbus:v:48:y:2013:i:1:p:1-12

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    Related research

    Keywords: CEO attributes; Internationalization; Performance; Information processing capability;

    References

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    1. Contractor, Farok J. & Kumar, Vikas & Kundu, Sumit K., 2007. "Nature of the relationship between international expansion and performance: The case of emerging market firms," Journal of World Business, Elsevier, vol. 42(4), pages 401-417, December.
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    7. William G Egelhoff, 1991. "Information-Processing Theory and the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 341-368, September.
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    11. Danny Miller, 1991. "Stale in the Saddle: CEO Tenure and the Match Between Organization and Environment," Management Science, INFORMS, vol. 37(1), pages 34-52, January.
    12. Hennart, J.M.A., 2007. "The theoretical rationale for a multinationality - performance relationship," Open Access publications from Tilburg University urn:nbn:nl:ui:12-284201, Tilburg University.
    13. Pol Herrmann & Deepak K. Datta, 2006. "CEO Experiences: Effects on the Choice of FDI Entry Mode," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 755-778, 06.
    14. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
    15. Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan, vol. 34(1), pages 5-18, January.
    16. Pol Herrmann & Deepak K Datta, 2002. "CEO Successor Characteristics and the Choice of Foreign Market Entry Mode: An Empirical Study," Journal of International Business Studies, Palgrave Macmillan, vol. 33(3), pages 551-569, September.
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