The effects of managerial capabilities on export, FDI and innovation: Evidence from Indian firms

Using a resource-based view of the firm, we analyze in what way managerial capabilities shape the internationalization decisions of firms in emerging markets, specifically Indian manufacturers. We build a conceptual model that connects managerial capabilities to export and foreign direct investment (FDI). The empirical analysis demonstrates that prior experience of managers in multinational firms is associated with exporting. The share of managers with a foreign business education is connected to FDI. We also check for self-selection and provide evidence for the effects that managerial capabilities and internationalization have on efficiency and innovation.