Negative performance feedback, CEO power and internationalization

Tao Bai, Abby Jingzi Zhou, Steven Shijin Zhou and Peter Liesch

Journal of World Business, 2025, vol. 60, issue 3

Abstract: We examine the critical role of CEO power in influencing the firm's internationalization in response to negative performance feedback. Firms with CEOs who possess strong ownership and expert power may adopt a self-enhancement approach avoiding strategic changes within the firm such as pursuing internationalization to address a performance shortfall. In contrast, those with CEOs who wield significant structural and prestige power may adopt a problem-solving approach using internationalization as a solution. Positive performance prospects, as identified by business analysts, intensify these patterns. Data from 462 newly listed public companies in China from 2009 to 2020 support our hypotheses. We conclude that firms may internationalize to address domestic performance shortfalls rather than to exploit advantages in overseas markets.

Keywords: Negative performance feedback; Internationalization; CEO power; Positive performance prospect (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S109095162500015X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:worbus:v:60:y:2025:i:3:s109095162500015x

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic
http://www.elsevier. ... 620401/bibliographic

DOI: 10.1016/j.jwb.2025.101626

Access Statistics for this article

Journal of World Business is currently edited by David Collings and Jonathan Doh

More articles in Journal of World Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().