INSIDE BOARD MEMBERS, REGULATORY CHANGE AND INTERNATIONALIZATION: THE CASE OF THE U.S. TELECOMMUNICATIONS INDUSTRY

During the past decade, the Regional Bell Operating Companies have been confronted with continuing deregulation and new internationalization opportunities. We suggest that their strategic moves regarding internationalization are linked to specific internal and external contingencies. A pooled time series approach is employed to analyze the effects of the composition of the board of directors (insiders versus outsiders), core business home regulatory environment, and core business growth on the respective internationalization strategies of these firms. A stringent regulatory environment was found to be significantly associated with increased internationalization. Contrary to expectations, inside board members were also significantly associated with increased internationalization. Theoretical explanations and management implications are discussed.