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The Moderating Influence of Competitive Intensity on the Relationship between CEOs' Regulatory Foci and SME Internationalization

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  • Adomako, Samuel
  • Opoku, Robert A.
  • Frimpong, Kwabena

Abstract

The international business literature has mainly focused on the impact of top managers' psychological attributes on firms' strategic decisions. However, the potential moderating influence of industry conditions such as competition, has not been well explored. Deriving insights from the regulatory focus and upper echelons theories, this paper extends the international business and regulatory focus literature by investigating how the impact influence of CEOs' regulatory foci on firms' degree of internationalization depends on the intensity of competitive market conditions. Using primary data gathered from 289 small and medium-sized enterprises (SMEs) in Ghana, the findings of the study revealed when competition is intense in the domestic market, the potency of a CEO's promotion focus as a driver of internationalization is amplified. In addition, the research shows that intense domestic market competition weakens the negative influence of a CEO's prevention focus on a firm's degree of internationalization. These findings have important research and managerial implications for international business.

Suggested Citation

  • Adomako, Samuel & Opoku, Robert A. & Frimpong, Kwabena, 2017. "The Moderating Influence of Competitive Intensity on the Relationship between CEOs' Regulatory Foci and SME Internationalization," Journal of International Management, Elsevier, vol. 23(3), pages 268-278.
    • Handle: RePEc:eee:intman:v:23:y:2017:i:3:p:268-278
    DOI: 10.1016/j.intman.2017.02.001
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