Going global? CEO political ideology and the choice between international alliances and international acquisitions

• 成果类型: Article
• 署名作者: Chandler, Jeffrey A.; Kim, Yeongsu (Anthony); Waddingham, Jacob A.; Hill, Aaron D.
• 署名单位: University of North Texas System; University of North Texas Denton; Western Kentucky University; Texas State University System; Texas State University San Marcos; State University System of Florida; University of Florida
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-023-00607-0
• 发表日期: 2023
• 页码: 1441-1470
• 关键词: upper echelons theory; CEO political ideology; board vigilance; international alliances; international acquisitions; foreign market entry choices

摘要

Drawing on upper echelons theory and political science research, we investigate how CEO political ideology influences a firm's choice between international alliances and international acquisitions as an entry mode into foreign markets. Due to their ideological differences, we find that firms led by more liberal CEOs are more likely to use international alliances when entering a foreign market while firms led by more conservative CEOs are more likely to use international acquisitions as an entry mode choice. We also examine how these political preferences of CEOs can be mitigated by more vigilant boards. We find that the effect of CEO political ideology on the choice between international alliances and international acquisitions is mitigated by greater board independence and greater independent director shareholdings in the firm. However, contrary to our expectations, we find that separating the CEO and board chair positions has no effect on this relationship, suggesting that CEOs' political preferences shape such choices regardless of whether CEOs are also the chair of the board. In general, our findings indicate the importance of CEO political values as a predictor of a firm's approach to foreign market entry strategies.