E-commerce capability and CEO attributes: impacts on export performance

Abstract

This study examines how firm e-commerce capabilities and CEO characteristics affect firms' export performance. Using the measure 'e-commerce capability' obtained by text-mining from 10-K filings, we find that the firm's e-commerce capabilities positively affect domestic sales performance and affect negatively export performance. Also we find that those negative effects are stronger for firms with female CEOs. However, overconfident CEOs and older CEOs mitigate those negative effects. Our results indicate that the impact of firm's e-commerce capabilities on firm's export performance varies depending on the CEO characteristics which are closely related to CEO's risk preference and risk-taking behaviour. Furthermore, we find that firm's e-commerce capabilities for export positively affect firm value. This finding indicates that e-commerce capability is essential to increase firm value. Overall, this study contributes to the literature on resource-based view (RBV) of the firm and the upper echelon theory (UET).