Resilient leadership and outward foreign direct investment: A conceptual and empirical analysis

Penghua Qiao, Anna Fung, Hung Gay Fung, Xinnian Ma

Research output: Contribution to journalArticlepeer-review

Abstract

We developed and tested a theoretical model that links the effect of resilient leadership to firms’ outward foreign direct investment (OFDI). We identified resilience scores using videos of CEOs/Board chairs and the Connor-Davidson Resilience Scale. We theorized that resilient leaders will have a positive effect on research and development (R&D) investment, human capital investment, and OFDI. Moreover, R&D and human capital investments will have a mediating effect on resilient leaders in driving OFDI. The positive effect of resilient leadership on OFDI will be stronger when confronted with external forces, such as the competitive intensity of industry and government subsidies, whereas the positive effect will be weaker when resilient leaders have prior foreign experience and their firms are large .  We found support for these ideas in a longitudinal sample of Chinese companies.

Disciplines

  • Finance

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