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The role of top management team international orientation in international strategic decision-making: The choice of foreign entry mode

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  • Nielsen, Bo Bernhard
  • Nielsen, Sabina

Abstract

By applying the upper echelons perspective to international strategic decision-making, we examine the impact of managerial characteristics on the choice of foreign entry mode. We distinguish between top management team (TMT) international experience and nationality diversity and propose the latter as a central yet understudied aspect of TMT composition that influences international decision-making with regard to choice of entry mode in a unique way. Our results show that while TMTs with international experience are more likely to choose full-control entry modes over shared-control entry modes, nationally diverse TMTs are more inclined to opt for shared-control over full-control entry modes when entering foreign markets. This highlights the need to treat TMT nationality diversity and international experience as two distinct characteristics influencing international strategic decision-making.

Suggested Citation

  • Nielsen, Bo Bernhard & Nielsen, Sabina, 2011. "The role of top management team international orientation in international strategic decision-making: The choice of foreign entry mode," Journal of World Business, Elsevier, vol. 46(2), pages 185-193, April.
    • Handle: RePEc:eee:worbus:v:46:y:2011:i:2:p:185-193
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