Dare To Be Different: CEO International Experience and Strategic Deviance

Abstract

Extant literature on CEO international experience largely supports the positive relationship between CEO international experience on firm performance and internationalization; however, less is known about the decisions CEOs make that could lead to such outcomes. As international experience reflects not only cultural intelligence, but also correlates with traits like openness to experience, the impact of international experience may extend beyond strategic decisions that are directly tied to capabilities in a foreign context (e.g., foreign direct investments). In other words, CEOs with international experience may feel more comfortable making decisions that deviate from industry practices regardless if they relate to a cross-cultural decision. Integrating the ability, motivation, and opportunity framework with managerial discretion and drawing upon upper echelon’s theory, I propose that CEO international experience has a positive relationship with strategic deviance. Specifically, CEO international experience reflects the ability and motivation to be distinct while environmental uncertainty and the international experience of the board provide the opportunity to pursue deviant decisions.