CEO rhetorical strategies and firms’ internationalization: a communication perspective

Abstract

Based on the upper echelons theory, previous literature has suggested that CEO's personal characteristics influence firms’ internationalization. However, most research investigates the static traits such as age, education, overseas background, etc. Since CEO's communication skills exert influence on the firm as well, communication may also be of significance in the process of firm internationalization. We proposed that three CEO rhetoric strategies affect firm internationalization by persuading employees to recognize the international purpose and contribute to it jointly. Using the data of CEO rhetorical strategies and the level of internationalization of 118 Chinese listed firms, we tested the influence of CEO rhetoric strategy on firms’ internationalization. The results show that two CEO rhetoric strategies – Ethos and Pathos – affect firm internationalization positively. The findings reveal that proper strategy of CEO communication is important for the execution of firms’ internationalization.