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Too Far East is West: CEO Overconfidence Influences Firm Internationalization in Emerging Economies

Author

Listed:
  • Dayuan Li

    (Central South University)

  • Yuqing Zhao

    (Central South University)

  • Ding Wang

    (Central South University)

  • Lu Zhang

    (Hunan First Normal University)

  • Yang Liu

    (Zhejiang University)

Abstract

To better understand how CEO confidence influences emerging market multinational enterprises’ (EMNEs) internationalization, on the basis of upper echelons theory, we use a sample of panel data of listed companies in China from 2008 to 2018 and find that there is an inverted U-shaped relationship between CEO confidence and internationalization. We also explore the boundary conditions that moderate the effects of CEO confidence on EMNEs’ internationalization through analysing the unique roles of the market and government in emerging economies. The research results show that market dynamism steepens the inverted U-shaped relationship, while government subsidies flatten the inverted U-shaped relationship. Our findings contribute to the upper echelons perspective of the internationalization of firms from emerging economies.

Suggested Citation

  • Dayuan Li & Yuqing Zhao & Ding Wang & Lu Zhang & Yang Liu, 2023. "Too Far East is West: CEO Overconfidence Influences Firm Internationalization in Emerging Economies," Management International Review, Springer, vol. 63(3), pages 377-402, June.
    • Handle: RePEc:spr:manint:v:63:y:2023:i:3:d:10.1007_s11575-023-00505-5
    DOI: 10.1007/s11575-023-00505-5
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    References listed on IDEAS

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