AIB 2012 Conference Proceedings - Academy of International ...

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presents research propositions on the learning process of ‘born transnationals'. (For more information, please
contact: Joerg Freiling, University of Bremen, Germany: freiling@uni-bremen.de)
The Influence of Institutions in Founder-CEO Retention: IPO Firms in a Developing Country Context
Bruce Allen Hearn, University of Sussex
Jenifer Piesse, Kings College London and University of Bournemouth
While there are considerable advantages for firms in the early stages of their lifecycles in having their
entrepreneurial founders in leading CEO position these change during the initial primary offering (IPO) process
and attraction of new minority outsider investors. As such the new firm-level corporate governance
mechanisms as well as larger state-level institutional characteristics exert considerable influence in governance,
incentive alignment and reduction of agency between entrepreneurial founder CEO and new outsider
shareholders. Using a unique hand-collected sample of 97 IPO firms from across 18 Sub Saharan African (SSA)
stock markets we find evidence that IPO firms are more likely to have founders as CEO with boards
characterised by fewer foreign directors, fewer nonexecutives and greater proportions of these being
independent and less ownership by nonexecutives. Additionally lower government effectiveness and weaker
rule of law are associated with founding entrepreneur being retained as CEO while the opposite is true of
informational environment quality, including corruption control and unrestricted media (For more information,
please contact: Bruce Allen Hearn, University of Sussex, United Kingdom: b.a.hearn@sussex.ac.uk)
Engaging Diasporas as International Entrepreneurs in Developing Countries: In Search of Determinants
Jean Marie Nkongolo, University of Regina
Elie Virgile Chrysostome, State University of New York - Plattsburgh
Diaspora phenomenon is increasingly recognized by practitioners and scholars as an important factor of
development in developing economies. Diaspora members send remittances, constitute an important source of
foreign direct investments and improve managerial capabilities in these economies. Although the literature is
glutted with examples of the impact of diaspora on fostering entrepreneurship and reducing poverty, a
theoretical foundation and framework are needed to explain these impacts. This study explores the theoretical
foundation of the diaspora's benefits in the context of international business and entrepreneurship. A framework
identifying the determinants of the diaspora's benefits in the country of origin is developed. (For more
information, please contact: Elie Virgile Chrysostome, State University of New York - Plattsburgh, USA:
elie.chrysostome@plattsburgh.edu)
Emerging Economies New Ventures Internationalization Strategy: Firm's Readiness VS Founder's Willingness
Watcharaphong Leartsurawat, Florida International University
This study proposes a synergetic conceptual framework on the internationalization strategy of emerging
economies new ventures based on the integration of strategy tripod and the person-environment fit concepts.
The proposed integrative framework suggests that emerging economy new ventures decisions on their
internationalization strategy are influenced from both their firm's internationalization capabilities and their
founder's psychological international suitability. Bringing into play psychological work preferences, resourcebased
view, knowledge-based view, industry-based view, institutional theory and emerging economies setting,
this study contributes to the international business field in two ways. First, it contributes to the literature a new
venture from developing countries internationalization strategy research. Second, the proposed integrative
framework explains how founder's psychological work preferences influence emerging economies new ventures'
internationalization strategy, in addition to firm specific resources, industry based competitions, and institutional
environments. (For more information, please contact: Watcharaphong Leartsurawat, Florida International
University, USA: wlear001@fiu.edu)
AIB 2012 Conference Proceedings
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