Internationalization of emerging-market firms: The contingent role of board capability

Abstract

Despite extensive research on the internationalization-performance relationship, our understanding of the role of board of directors in the internationalization of emerging-market firms remains relatively limited. In addition, research pertaining to the board’s influence on firm performance has tended to focus more on board content than on its processes. In an attempt to address this research gap, we study the contingent role of the board’s capabilities on the relationship between internationalization and performance, in emerging-market firms. We propose that board tenure will have a negative moderating effect, whereas board members’ experience as CEO or general manager, industry-specific experience, international experience, and level of academic achievement will have positive moderating effects. We argue that, in the context of emerging market firms, board interactions are particularly important, and propose that moderate levels of board interaction will be most beneficial for the internationalizationperformance relationship.