How CEO Narcissism Predicts Initial-Entry and Post-Entry Speed of Internationalization

PurposeThis study explores the impact of owner chief executive officers' (CEO) narcissism on the exporting small to medium-sized enterprises' (SMEs) decision-making on the international market expansion speed after their initial entry. Specifically, the authors use the mechanism of firms' international entrepreneurial orientation (IEO) to examine how owner CEO narcissism may influence SMEs' post-entry speed of internationalization (PSI), both directly and indirectly.Design/methodology/approachTo test the hypotheses, the authors draw on data from a two-wave questionnaire and on archival export data from 291 Chinese exporting SMEs in three municipalities and 17 provinces from 2019 to 2020.FindingsThe results support the theoretical predictions that owner CEO narcissism shapes exporting SMEs' decisions on PSI, both directly and indirectly, through the mediation of firm-level IEO.Originality/valueThe study extends emerging research on the role of CEO narcissism in the upper echelons literature into the international marketing (IM) context. It also offers new insights into what drives exporting SMEs' IM decision-making from a psychological microfoundations perspective. Furthermore, the authors theoretically establish and empirically demonstrate the key role of a firm's IEO as a mediator to complement the existing literature's focus on the direct influence of CEO narcissism on firms' internationalization decisions.

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Disentangling the effects of post-entry speed of internationalisation on export performance of INVs

International Small Business Journal Researching Entrepreneurship ◽

10.1177/0266242618775169 ◽

2018 ◽

Vol 36 (7) ◽

pp. 780-806 ◽

Cited By ~ 12

Author(s):

Arash Sadeghi ◽

Elizabeth L Rose ◽

Sylvie Chetty

Keyword(s):

Export Performance ◽

New Ventures ◽

Performance Outcomes ◽

Organisational Learning ◽

Three Dimensions ◽

International New Ventures ◽

Different Dimensions ◽

Entry Speed ◽

Post Entry ◽

Intensity Spread

This article aims to explore the under-researched topic of post-entry speed of internationalisation (PSI) in the context of international new ventures (INVs). We unbundle PSI and examine its relationship with both financial and non-financial export performance, considering three related, but conceptually distinct, dimensions of PSI: internationalisation intensity, spread and geographical diversity. Building on organisational learning theory, we highlight different mechanisms that contribute to post-entry performance outcomes among INVs. Our findings from a sample of 112 INVs in New Zealand provide evidence that the three dimensions of PSI are distinct and that they have different impacts on financial and non-financial export performance. This article contributes to the limited, yet growing body of literature on PSI by providing a deeper understanding of PSI and its constituent dimensions. In addition, this study offers new theoretical insights into how and why different dimensions of post-entry speed of internationalisation can contribute to stronger export performance.

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Effectuation, network-building and internationalisation speed

International Small Business Journal Researching Entrepreneurship ◽

10.1177/0266242618796145 ◽

2018 ◽

Vol 37 (1) ◽

pp. 3-21 ◽

Cited By ~ 18

Author(s):

Shameen Prashantham ◽

Kothandaraman Kumar ◽

Suresh Bhagavatula ◽

Saras D Sarasvathy

Keyword(s):

New Venture ◽

Outcome Variable ◽

Causal Network ◽

Negatively Associated ◽

Extant Literature ◽

International Scope ◽

Network Building ◽

Causal Approach ◽

Entry Speed ◽

Initial Entry

We extend research on the speed of new venture internationalisation by distinguishing between effectual and non-effectual (i.e. causal) network-building approaches, and conceptualising their differential effects on the dimensions of initial entry speed, country (i.e. international) scope speed and international commitment speed. Drawing upon the extant literature on internationalisation speed, network building and effectuation theory, we argue that an effectual approach to network-building is positively associated with initial entry speed and international scope speed, but negatively associated with international commitment speed, while a causal approach is negatively associated with initial entry speed and international scope speed, but positively associated with international commitment speed. In addition, we contribute to effectuation scholarship by elaborating on the causal–effectual distinction in network-building and offering internationalisation speed as an important and interesting outcome variable.

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Filling the Post-Entry Speed of Internationalization and Export Performance Gap

Academy of Management Proceedings ◽

10.5465/ambpp.2020.17259abstract ◽

2020 ◽

Vol 2020 (1) ◽

pp. 17259

Author(s):

Arash Sadeghi ◽

Omid Aliasghar

Keyword(s):

Export Performance ◽

Performance Gap ◽

Entry Speed ◽

Post Entry

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Initial entry speed and international performance of INVs

Chinese Management Studies ◽

10.1108/cms-03-2019-0115 ◽

2019 ◽

Vol 14 (1) ◽

pp. 297-323 ◽

Cited By ~ 1

Author(s):

Sheng Huang ◽

Guangyu Ye ◽

Suqin Shen

Keyword(s):

New Ventures ◽

Individual Learning ◽

International New Ventures ◽

Learning Orientation ◽

Content Type ◽

International Performance ◽

Upper Echelons Theory ◽

National Institutions ◽

Entry Speed ◽

Initial Entry

Purpose In the literature concerning international new ventures (INVs), there has been a tension between the learning advantages of newness and absorptive capacity perspectives for explaining the performance influence of initial entry speed. To address this tension, this paper, through integrating both the motivation and ability to acquire foreign knowledge, proposes a theoretical model about the nonlinear relationship between INVs’ initial entry speed and international performance. Drawing upon upper echelons theory and the institution-based view, this study aims to extend the literature by developing two boundary conditions for this relationship: the moderating role of executives’ individual learning orientation and sub-national institutions. Design/methodology/approach The authors used the latent moderated structural equations approach specific to Mplus to test the hypotheses with data on 322 Chinese INVs. Findings The findings indicate that INVs’ international performance will increase initially and then decrease, as they accelerate initial entry speed (an inverted U-shaped relationship), and that INVs managed by executives with a higher learning orientation and located in better sub-national institutional environments achieve greater international growth gains from moderate initial entry speed. Originality/value This study mainly makes contributions to the INV literature by integrating the motivation and ability to acquire foreign knowledge to offer full understanding of the effect of initial entry speed on international performance, and by elaborating on the moderating effects of executives’ individual learning orientation and sub-national institutions on this relationship.

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Direction of luxury fashion retailers' post-entry expansion – the evidence from China

International Journal of Retail & Distribution Management ◽

10.1108/ijrdm-06-2020-0218 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Huifeng Bai ◽

Julie McColl ◽

Christopher Moore ◽

Weijing He ◽

Jin Shi

Keyword(s):

Local Market ◽

Tier 2 ◽

Content Type ◽

Tier System ◽

Brick And Mortar ◽

International Retailing ◽

Post Entry ◽

Tier 3 ◽

The Impact ◽

Initial Entry

PurposeThis empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the context of the luxury fashion retail market in China.Design/methodology/approachThe research adopts qualitative multiple case studies.FindingsAfter initial entry into China, luxury fashion retailers further expand their retail operations through three directional patterns: cautious, regional and countrywide expansions. The stepwise expansion from tier-1 to tier-2 and tier-3 cities remains popular; however, the importance of the tier system of Chinese cities has been weakened because tier-3 cities in affluent regions are perceived to have more potential than some tier-2 cities in less developed regions. The retailers assess a potential local market through interrelated criteria, including location and strategic importance, economic development, available store locations and staff, a high degree of urbanisation and tourism, debatable favourable policies and offers, and popularity of e- and m-commerce. There is a positive relationship between popularity of e- and m-commerce in a city and the potential of that city to run brick-and-mortar stores.Originality/valueThe paper offers an insight into the current international retailing literature by examining the direction of luxury fashion retailers' further expansion after their initial market entry. Particularly, the research considers a set of criteria which can be used to assess a potential local market, and the impact of e- and m-commerce on local market choices for brick-and-mortar stores.

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The impact of entry mode on subsequent commitment to poorly performing subsidiaries

Corporate Ownership and Control ◽

10.22495/cocv5i1c3p7 ◽

2007 ◽

Vol 5 (1) ◽

pp. 482-492

Author(s):

Jamie D. Collins ◽

Christopher R. Reutzel ◽

Dan Li

Keyword(s):

International Business ◽

Ownership Structure ◽

Entry Mode ◽

Institutional Distance ◽

Foreign Subsidiary ◽

Escalation Of Commitment ◽

Post Entry ◽

The Impact ◽

The Relationship ◽

Initial Entry

Despite of the extensive research on the choice of how to structure a new foreign subsidiary in the international business literature, few studies have explored how the initial foreign entry mode impacts a multinational’s subsequent activities in the host market. Drawing insights from prospect theory, this paper addresses how a multinational’s entry mode influences the firm’s reaction to negative subsidiary performance. Specifically, we argue that the entry mode (ownership structure of a multinational’s subsidiary) affects the firm’s potential for escalation of commitment to a poorly performing subsidiary. Further, we argue that the relationship between entry mode and a multinational’s escalation of commitment is moderated by three factors – institutional distance between the home and the host country, cost of exiting the host market, and the parent firm’s prior performance. This paper contributes to the literature by presenting the case that initial entry mode influences a multinational’s post-entry activities

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