<scp>CEO</scp> Characteristics and <scp>MSME</scp> Internationalization: An Interpretative Phenomenological Analysis of Finnish Firms

ABSTRACT While Upper Echelons Theory (UET) explains how executives influence firm strategy, limited research examines the direct role of CEO characteristics in the internationalization of micro, small, and medium‐sized enterprises (MSMEs). Given the centralized decision‐making in MSMEs, the personal attributes of CEOs play a crucial role in shaping international expansion strategies. By conducting semi‐structured interviews with 12 CEOs from Finnish MSMEs using Interpretative Phenomenological Analysis (IPA), this study makes three key contributions to the international business and leadership literature. First, while prior research highlights education as a general enabler of strategic decision‐making, this study identifies “international business acumen capability,” where CEOs with specialized education in international business demonstrate superior strategic foresight and adaptability in global markets. Second, while international experience has been associated with reducing risk perception, this study introduces “experiential risk‐mitigation capability,” wherein CEOs with prior exposure to foreign markets develop the ability to anticipate and navigate uncertainties more effectively. Third, the study expands on the influence of demographic factors by identifying “strategic diversity leverage capability,” as female CEOs emphasize structured risk management and long‐term relationship‐building, while immigrant CEOs apply bicultural knowledge and international networks to facilitate market entry. These findings extend UET by illustrating how specific CEO capabilities influence Finnish MSME internationalization. In addition to its theoretical contributions, this study also provides actionable insights for MSME leaders and policymakers on fostering CEO capabilities critical for international success. The study has important implications for businesses, policymakers, and training institutions, emphasizing the need to develop leadership competencies that enhance strategic global expansion.