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Your potential knows no bounds: Do local CEOs influence firms’ overseas R&D activities?

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  • Zhong, Xi
  • He, Xinming
  • Zhang, Wei

Abstract

CEOs significantly affect firms’ strategic choices; however, little is known about whether and how local CEOs influence firms’ overseas research and development (R&D) decisions. By synthesising upper echelons theory and place attachment theory, we explore the intrinsic mechanisms and situational boundaries through which local CEOs shape firms’ overseas R&D. We posit that local CEOs have a weaker global mindset, which ultimately inhibits firms’ overseas R&D activities, and that the negative impact is attenuated when (1) CEOs have more overseas experience, (2) firms are more internationalised, or (3) regions have more international openness. The results from a large dataset of listed Chinese companies spanning 2005 to 2022 support these predictions. This study provides novel theoretical and empirical evidence to expand the current understanding of the micro-foundations of firms’ overseas R&D decisions. Moreover, the findings have important implications for firms in better integrating innovation resources on a global scale to increase competitiveness.

Suggested Citation

  • Zhong, Xi & He, Xinming & Zhang, Wei, 2025. "Your potential knows no bounds: Do local CEOs influence firms’ overseas R&D activities?," Journal of Business Research, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:jbrese:v:192:y:2025:i:c:s0148296325001109
    DOI: 10.1016/j.jbusres.2025.115287
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