Abstract
Based on the upper echelons theory, previous literature has suggested that CEO's personal characteristics influence firms' internationalization. However, most research investigates the static traits such as age, education, overseas background, etc. Since CEO's communication skills exert influence on the firm as well, communication may also be of significance in the process of firm internationalization. We proposed that three CEO rhetoric strategies affect firm internationalization by persuading employees to recognize the international purpose and contribute to it jointly. Using the data of CEO rhetorical strategies and the level of internationalization of 118 Chinese listed firms, we tested the influence of CEO rhetoric strategy on firms' internationalization. The results show that two CEO rhetoric strategies - Ethos and Pathos - affect firm internationalization positively. The findings reveal that proper strategy of CEO communication is important for the execution of firms' internationalization.
Highlights
The internationalization of firms means that the firms conduct business activities across national borders
Because the strategic decision and execution of the firm are mainly affected by CEOs (Haynes & Hillman, 2010), extant research from upper echelons theory on corporate internationalization strategies mostly involves the relationship between the CEOs' personal traits and corporate internationalization strategy, and rarely studies how CEOs can effectively persuade employees to participate in the process of corporate internationalization
The purpose of this study is to demonstrate that CEOs using rhetorical strategies aimed at persuading employees to participate in international business activities could effectively accelerate the internationalization of firms
Summary
The internationalization of firms means that the firms conduct business activities across national borders R., 2000), which belongs to the strategy of firm regional diversification. International operations can reduce the volatility of business risks and returns P., 1993; Tallman & Li, 1996), bring organizations a competitive advantage (Dunning, 1993), and bring more opportunities for firm growth (Wolf, 1977). Because the strategic decision and execution of the firm are mainly affected by CEOs (Haynes & Hillman, 2010), extant research from upper echelons theory on corporate internationalization strategies mostly involves the relationship between the CEOs' personal traits and corporate internationalization strategy, and rarely studies how CEOs can effectively persuade employees to participate in the process of corporate internationalization
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