Journal of Northeastern University Natural Science ›› 2020, Vol. 41 ›› Issue (5): 753-760.DOI: 10.12068/j.issn.1005-3026.2020.05.024

• Management Science • Previous Articles    

Heterogeneity of CEO Managerial Cognition and Location Preference for OFDI Political Risk in Multinational Enterprises:Based on the Micro Data of Chinese Multinational Enterprises

SHU Bo, DU Xiao-jun   

  1. School of Business Administration, Northeastern University, Shenyang 110169, China.
  • Received:2019-08-23 Revised:2019-08-23 Online:2020-05-15 Published:2020-05-15
  • Contact: SHU Bo
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Abstract: From the perspective of the heterogeneity of CEO managerial cognition, and based on the upper echelons theory, the mechanism and boundary conditions of CEO managerial cognitive heterogeneity on OFDI’s location preference for political risk were investigated by means of the data of multinational enterprises listed in Shenzhen and Shanghai Stock Exchange of China from 2009 to 2017.The results showed that a significant U-shaped relationship exists between CEO managerial cognitive heterogeneity (two dimensions of explicit knowledge and tacit knowledge) and OFDI’s location preference for political risk, but the positive moderating effect of CEO risk bearing on the U-shaped relationship between CEO managerial cognition heterogeneity and OFDI’s location preference for political risk is not significant.

Key words: heterogeneity of CEO managerial cognition, risk bearing, OFDI political risk location preference; explicit knowledge; tacit knowledge

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