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.
Citation
Zhong, X., He, X., & Zhang, W. (2025). Your potential knows no bounds: do local CEOs influence firms’ overseas R&D activities?. Journal of Business Research, 192, Article 115287. https://doi.org/10.1016/j.jbusres.2025.115287
