Analysis shows that overconfident CEOs speed up internationalization and enhance extreme MNE performance, indicating the complexity of board vigilance.
This study examines how overconfident CEOs impact the speed of internationalization and extreme MNE performance. According to the CEO overconfidence literature, it proposes that overconfident CEOs tend to pursue a rapid pace of international expansion, thereby achieving extreme MNE performance. It also argues that vigilant boards weaken not only the relationship between overconfident CEOs and the speed of internationalization but also the relationship between overconfident CEOs and extreme MNE performance. The empirical results support the notion that CEO overconfidence is positively related not only to the speed of internationalization but also to the extreme performance of MNEs. However, this study does not find that board vigilance plays a moderating role in affecting the above relationships. To summarize, this study contributes to the field of international business by highlighting the importance of microfoundations. The implications of this study also facilitate our understanding of the impacts of cognitive bias in general, CEO overconfidence in particular, on the internationalization process, or the speed of internationalization, and MNE performance.
No takes yet. Share an insight, caveat, or question.
Yu–Kai Wang (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: