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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

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.

Suggested Citation

  • Hutzschenreuter, Thomas & Horstkotte, Julian, 2013. "Performance effects of international expansion processes: The moderating role of top management team experiences," International Business Review, Elsevier, vol. 22(1), pages 259-277.
  • Handle: RePEc:eee:iburev:v:22:y:2013:i:1:p:259-277
    DOI: 10.1016/j.ibusrev.2012.04.006
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    Cited by:

    1. Mukherjee Subhasree & Dhayanithy Deepak, 2017. "Effect of Inter-organizational Network on TMT – Entry Mode Choice relationship," Working papers 246, Indian Institute of Management Kozhikode.
    2. Agnihotri, Arpita & Bhattacharya, Saurabh, 2015. "Determinants of export intensity in emerging markets: An upper echelon perspective," Journal of World Business, Elsevier, vol. 50(4), pages 687-695.
    3. 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.
    4. repec:pal:jintbs:v:48:y:2017:i:9:d:10.1057_s41267-017-0105-9 is not listed on IDEAS
    5. repec:eee:iburev:v:27:y:2018:i:1:p:125-138 is not listed on IDEAS
    6. repec:eee:iburev:v:26:y:2017:i:5:p:991-1008 is not listed on IDEAS
    7. M. Díaz-Fernández & M. González-Rodríguez & Biagio Simonetti, 2015. "Top Management Teams’ demographic characteristics and their influence on strategic change," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 1305-1322, May.

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