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The drivers of international corporate entrepreneurship: CEO incentive and CEO monitoring mechanisms

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  • Wang, Yu-Kai (Mike)
  • Chung, Chris Changwha
  • Lim, Dominic S.K.

Abstract

This study examines international corporate entrepreneurship associated with new product lines and new geographic markets. Drawing upon agency theory and the corporate entrepreneurship literature, we posit that aligning CEO incentives with shareholder interests and adopting CEO monitoring mechanisms will promote international corporate entrepreneurship. We test the hypotheses using 277 U.S.-based manufacturing firms during the period from 2003 to 2009. Our findings highlight how various governance mechanisms such as a CEO's compensation linked to the long-term performance of the firm, the values of the CEO's shareholding, independent board leadership, and the representation of outside directors influence international corporate entrepreneurship of existing firms.

Suggested Citation

  • Wang, Yu-Kai (Mike) & Chung, Chris Changwha & Lim, Dominic S.K., 2015. "The drivers of international corporate entrepreneurship: CEO incentive and CEO monitoring mechanisms," Journal of World Business, Elsevier, vol. 50(4), pages 742-753.
    • Handle: RePEc:eee:worbus:v:50:y:2015:i:4:p:742-753
    DOI: 10.1016/j.jwb.2015.02.002
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    5. Ilya R. P. Cuypers & Charmi Patel & Gokhan Ertug & Jiatao Li & Youtha Cuypers, 2022. "Top management teams in international business research: A review and suggestions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 481-515, April.
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    8. Wu Zhao & Wei Liu & Yun Chen, 2019. "Internal Fission Strategies in Corporate Entrepreneurship: A Case Study in China," Sustainability, MDPI, vol. 11(19), pages 1-20, September.

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