Explaining the Internationalization of EMNEs: Role of Managerial Intentionality

A growing body of work has highlighted that the internationalization paths, processes and positions of emerging multinationals (EMNEs) are distinct and differ from those of the traditional MNCs from the West. We are yet to understand, however, some of the underlining drivers that give rise to these differences. In this paper, we identify and theorize on one such key driver of EMNEs’ internationalization namely, managerial intentionality – specifically owners taking on the role of manager-CEOs. We propose that firms with owner-CEOs, aided by their long-term orientation and less-restricted decision making powers, are likely to attain higher degree of internationalization. Further, the effect of owner-CEOs on internationalization is higher for independent firms than for firms affiliated to business groups. We test our predictions using a proprietary, longitudinal panel data set of 368 Indian firms (that were a part of the BSE 500 index as on September 2012) over the ten-year period from 2002 to 2011 and find supporting evidence.