How a chairperson's international experience can affect the post-entry speed of international SMEs from emerging economies: the roles of functional variety and power

Abstract

Purpose

Previous research features the international experience of managers in the decisions regarding internationalisation speed. However, the vitality of the role a chairperson plays in shaping the internationalisation decisions of small and medium-sized enterprises (SMEs) from emerging economies is intriguing. Moreover, the decision-making process and leadership context of SME internationalisation are not fully understood. Drawing upon the upper echelons decision-making theory and the cognitive perspectives of decision, this paper examines the impact of a chairperson's previous experience on the post-entry speed of internationalisation, highlighting the conditioning effects of leadership contingencies – the functional variety and power of the chairperson.

Design/methodology/approach

The study uses a panel data set of Chinese SMEs active from 2010 to 2019 to test the research hypotheses. A feasible generalised least-squares estimator was applied to test the hypotheses.

Findings

The results show that the international experience of a chairperson speeds up the depth and breadth of the post-entry speed of internationalisation. However, the strength of these relationships depends on the leadership context. The chairperson's functional variety alleviates the influence of international experience, whilst the power of the chairperson reinforces its impact.

Originality/value

The results show that the international experience of a chairperson speeds up the depth and breadth of the post-entry speed of internationalisation. However, the strength of these relationships depends on the leadership context. The chairperson's functional variety alleviates the influence of international experience, whilst the power of the chairperson reinforces its impact.

Citation

Qin, L., Akhtar, N., Farooq, Q. and Gillani, S.H.M. (2024), "How a chairperson's international experience can affect the post-entry speed of international SMEs from emerging economies: the roles of functional variety and power", International Journal of Emerging Markets, Vol. 19 No. 2, pp. 540-560. https://doi.org/10.1108/IJOEM-12-2021-1913