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Antecedents and performance effect of managerial misperception of institutional differences

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  • Weber, Clarissa E.
  • Chahabadi, Dominik
  • Maurer, Indre

Abstract

This study examines managerial misperception of institutional differences between countries—the deviation of managers’ perceived differences from actual ones. Drawing on a bounded-rationality perspective and an information-based view, we theorize about the effect and contextual antecedents of managerial misperception of country differences. Examining data from 186 managerial assessments confirms a negative relationship between managerial misperception and firms’ host-country performance, providing evidence for the relevance of this construct for international-management research and practice. Furthermore, in line with our theory, we find support for a direct impact of variables determining information-access opportunity and information-processing complexity as contextual antecedents of managerial misperception.

Suggested Citation

  • Weber, Clarissa E. & Chahabadi, Dominik & Maurer, Indre, 2020. "Antecedents and performance effect of managerial misperception of institutional differences," Journal of World Business, Elsevier, vol. 55(1).
    • Handle: RePEc:eee:worbus:v:55:y:2020:i:1:s1090951618305613
    DOI: 10.1016/j.jwb.2019.101018
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