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The impact of innovation aspiration shortfall and CEO origin on emerging economy firms' international expansion: evidence from China

Xi Zhong (School of Management, Guangdong University of Technology, Guangzhou, China)
Weihong Chen (School of Economics, Guangxi University, Nanning, China)
Ge Ren (School of Business Administration, South China University of Technology, Guangzhou, China)

International Marketing Review

ISSN: 0265-1335

Article publication date: 23 June 2022

Issue publication date: 1 November 2022

616

Abstract

Purpose

Whether and when the innovation aspiration shortfall (e.g. innovation performance lower than aspirations) will affect emerging economy firms (EEFs)' international expansion remains an important unanswered theoretical and practical question.

Design/methodology/approach

Based on performance feedback theory, this study explores the impact of innovation aspiration shortfall on EEFs' international expansion and the moderating role of CEO origin.

Findings

This study finds that innovation aspiration shortfall has a positive impact on EEFs' international expansion. This study also uncovers that EEFs are less likely to implement international expansion in response to innovation aspiration shortfall when the CEO is a founder than when the CEO is a non-founder, and EEFs are more likely to implement international expansion in response to innovation aspiration shortfall when the CEO is an outsider-CEO than when the CEO is an insider-CEO.

Originality/value

This study proposes that the interaction between innovation aspiration shortfall and CEO origin can be a useful predictor of EEFs' international expansion.

Keywords

Acknowledgements

The authors are grateful to associate editor professor Nathaniel Boso and two anonymous reviewers for their insightful comments and suggestions. This work was supported by the Guangdong Basic and Applied Basic Research Foundation (2021A1515110864) and the National Natural Science Foundation Project of China (71872053).

Conflict of interest statement: None

Citation

Zhong, X., Chen, W. and Ren, G. (2022), "The impact of innovation aspiration shortfall and CEO origin on emerging economy firms' international expansion: evidence from China", International Marketing Review, Vol. 39 No. 6, pp. 1309-1330. https://doi.org/10.1108/IMR-12-2021-0365

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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