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

  • Hutzschenreuter, Thomas
  • Horstkotte, Julian
Registered author(s):

    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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    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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