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

Abstract

The moderating influence of competitive intensity on the relationship between CEOs' regulatory foci and SME internationalization.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 domes-tic 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.

Chief executive officers' dispositional optimism, host country's rule of law, and foreign market equity mode choice of Ghanaian small and medium‐sized enterprises

“…The Ghana Export Promotion Authority oversees all exports and internationalization activities of SMEs in Ghana. The sampling criteria for the study were developed following previous research in the study setting (e.g., Adomako et al, 2017). First, we selected the participating SMEs based on condition that they engaged in cross‐border activities such as exporting since their inception.…”

“…The broad strands of the internationalization literature agree that firms' choice of methods for foreign market entry depends mostly on macrovariables such as the risks associated with host countries, but also personal factors relating to chief executive officers' (CEOs') personality characteristics (Adomako, Opoku, & Frimpong, 2017;Lai, Lin, & Chen, 2017;Oesterle, Elosge, & Elosge, 2016). However, despite a growing interest in the influence of managerial characteristics on firms' strategic decision-making process, scholarly knowledge is limited with regard to how and when psychological attributes of executives significantly affect firms' foreign entry mode decision.…”

Investments in managerial human capital: Explanations from prospect and regulatory focus theories

“…Regulatory focus has been shown to be of relevance for SME management (Adomako et al, 2017; Johnson et al, 2017; Wallace et al, 2010). Hybrid entrepreneurs (combining entrepreneurship and employment), if promotion focused, will contribute more time to the venture even if it presents greater risks; if prevention focused, this strategy must be deemed to lower risk (Burmeister-Lamp et al, 2012).…”

The effects of stakeholder integration on firm‐level product innovativeness: insights from small and medium‐sized enterprises in Ghana

“…As such, the question relating to how best to engage with those environments has been a major focus of several studies (e.g. Adomako et al, ; Ayyagari et al, ; Cui et al, ). The main strategic decision revolves around the issue of how the integration of stakeholders into a firm’s management process could generate innovation in high or low competitive environment conditions.…”