CEO general work experience and FDI-based internationalization

Abstract

PurposeThe purpose of this study is to study the impact of the chief executive officer (CEO) general work experience on the level of firm internationalization in the form of foreign direct investment.Design/methodology/approachThe author collects and analyzes data on publicly traded US firms in the manufacturing sector from 1993 to 2012.FindingsThe author finds that CEOs with more general work experience tend to engage in a higher degree of foreign direct investment (FDI)-based internationalization. This relationship will be weakened by CEO stock ownership and enhanced by CEO Ivy League education.Originality/valueThis study enriches the understanding of the important role top managers play in internationalization decisions. The study also contributes to the literature on managerial risk-taking by exploring the outcomes of managerial risk-taking, which have been less studied than the antecedents.