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Performance effects of international expansion processes: The moderating role of top management team experiences

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  • Hutzschenreuter, Thomas
  • Horstkotte, Julian
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    Abstract

    This study investigates how experience of top management teams (TMTs) influences the performance effect of added cultural distance in international expansion processes. Taking a dynamic perspective, we focus on internationalization processes and the cultural distance that is added in expansion periods. We argue that a TMT's experience can help in coping with the complexities of added cultural distance. Based on information-processing theory, we hypothesize and find that international experience and shared team-specific experience of a TMT positively moderate the relationship between added cultural distance and firm profitability. We test our hypotheses based on cross-sectional time-series data on 3656 expansion steps of 80 German firms during the 1985–2007 period.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 22 (2013)
    Issue (Month): 1 ()
    Pages: 259-277

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    Handle: RePEc:eee:iburev:v:22:y:2013:i:1:p:259-277

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    Related research

    Keywords: Added cultural distance; Complexity; Experience; Information processing; Panel analysis; Performance; Top management teams;

    References

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    Cited by:
    1. Segaro, Ethiopia L. & Larimo, Jorma & Jones, Marian V., 2014. "Internationalisation of family small and medium sized enterprises: The role of stewardship orientation, family commitment culture and top management team," International Business Review, Elsevier, vol. 23(2), pages 381-395.

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