In the name of the family: The effect of CEO clan culture background on firm internationalization

•CEO clan culture background is positively related to the firm’s degree of internationalization.•The imprint effect is strengthened when the CEO works locally.•The imprint effect is strengthened when facing more intensive competition in the domestic market.•The degree of economic policy uncertainty...

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Published inJournal of business research Vol. 161; p. 113837
Main Authors Liu, Feifei, He, Xinming, Wang, Tao
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.06.2023
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Online AccessGet full text
ISSN0148-2963
1873-7978
DOI10.1016/j.jbusres.2023.113837

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Abstract •CEO clan culture background is positively related to the firm’s degree of internationalization.•The imprint effect is strengthened when the CEO works locally.•The imprint effect is strengthened when facing more intensive competition in the domestic market.•The degree of economic policy uncertainty at home weakens the imprint effect. Clan culture is a traditional culture that is widespread in Asian countries, yet little is known about its impact on crucial firm decisions, such as internationalization. Drawing on upper echelons theory and imprinting theory, we suggest that a CEO’s clan culture background impacts firm internationalization through the mechanism of imprinting and strengthening the individual value of long-term orientation, and that this effect is subject to three conditional factors. Using a unique database of Chinese publicly listed firms, we confirm that (1) CEO clan culture background is positively related to the firm’s degree of internationalization, and (2) the imprint effect is strengthened when the CEO works locally or when the domestic market competition is intensive, but is mitigated when the economic policy at home is unpredictable. Finally, implications and limitations also are discussed.
AbstractList •CEO clan culture background is positively related to the firm’s degree of internationalization.•The imprint effect is strengthened when the CEO works locally.•The imprint effect is strengthened when facing more intensive competition in the domestic market.•The degree of economic policy uncertainty at home weakens the imprint effect. Clan culture is a traditional culture that is widespread in Asian countries, yet little is known about its impact on crucial firm decisions, such as internationalization. Drawing on upper echelons theory and imprinting theory, we suggest that a CEO’s clan culture background impacts firm internationalization through the mechanism of imprinting and strengthening the individual value of long-term orientation, and that this effect is subject to three conditional factors. Using a unique database of Chinese publicly listed firms, we confirm that (1) CEO clan culture background is positively related to the firm’s degree of internationalization, and (2) the imprint effect is strengthened when the CEO works locally or when the domestic market competition is intensive, but is mitigated when the economic policy at home is unpredictable. Finally, implications and limitations also are discussed.
ArticleNumber 113837
Author Liu, Feifei
He, Xinming
Wang, Tao
Author_xml – sequence: 1
  givenname: Feifei
  surname: Liu
  fullname: Liu, Feifei
  email: liufeifei@whu.edu.cn
  organization: Economics and Management School, Wuhan University, 299 Bayi Road, Wuchang District, Wuhan, China
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  givenname: Xinming
  orcidid: 0000-0003-4575-938X
  surname: He
  fullname: He, Xinming
  email: xinming.he@durham.ac.uk
  organization: Durham University Business School, Millhill Lane, Durham DH1 3LB, UK
– sequence: 3
  givenname: Tao
  orcidid: 0000-0003-1709-5336
  surname: Wang
  fullname: Wang, Tao
  email: wangtao@whu.edu.cn
  organization: Economics and Management School, Wuhan University, 299 Bayi Road, Wuchang District, Wuhan, China
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Keywords CEO cultural background
Internationalization
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Clan culture
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Snippet •CEO clan culture background is positively related to the firm’s degree of internationalization.•The imprint effect is strengthened when the CEO works...
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SubjectTerms CEO cultural background
Clan culture
Imprint
Internationalization
Long-term orientation
Title In the name of the family: The effect of CEO clan culture background on firm internationalization
URI https://dx.doi.org/10.1016/j.jbusres.2023.113837
Volume 161
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