IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/19037.html
   My bibliography  Save this paper

CEOs' Multicultural Experience, Firm Networks and Performance: Evidence from Firm-to-firm Transaction Data in Japan

Author

Listed:
  • ITO Tadashi
  • NAKAMURA Ryohei

Abstract

This paper postulates a hypothesis that the more diverse background a firm CEO has, the more extended firm-to-firm networks the firm constructs, which in turns leads to higher firm performance. Using the firm level data of firm CEOs' backgrounds and firm-to-firm networks, this paper corroborates the hypothesis by showing that firms whose CEOs are non-local-born are more likely to have more extended firm-to-firm transaction networks and consequently have better firm performance. Aside from this main finding, it also finds that the CEOs' graduated schools' level in terms of difficulty of entrance exams, which we consider as a proxy for CEOs' innate ability, has a strong positive nexus with the firm performance. The finding suggests an importance of human resource mobilization for growth.

Suggested Citation

  • ITO Tadashi & NAKAMURA Ryohei, 2019. "CEOs' Multicultural Experience, Firm Networks and Performance: Evidence from Firm-to-firm Transaction Data in Japan," Discussion papers 19037, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:19037
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/19e037.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. TODO Yasuyuki & SATO Hitoshi, 2011. "Effects of CEOs' Characteristics on Internationalization of Small and Medium Enterprises in Japan," Discussion papers 11026, Research Institute of Economy, Trade and Industry (RIETI).
    2. Berliant, Marcus & Fujita, Masahisa, 2012. "Culture and diversity in knowledge creation," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 648-662.
    3. Bogers, Marcel & Foss, Nicolai J. & Lyngsie, Jacob, 2018. "The “human side” of open innovation: The role of employee diversity in firm-level openness," Research Policy, Elsevier, vol. 47(1), pages 218-231.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lorenzo Cassi & Anne Plunket, 2014. "Proximity, network formation and inventive performance: in search of the proximity paradox," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 395-422, September.
    2. Marte C.W. Solheim & Ron Boschma & Sverre Herstad, 2018. "Related variety, unrelated variety and the novelty content of firm innovation in urban and non-urban locations," Papers in Evolutionary Economic Geography (PEEG) 1836, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2018.
    3. Muhammad Qamar Zia & Tobias M. Huning & Muhammad Sufyan Ramish & Muhammad Naveed & Shiraz Ahmed, 2024. "The impact of psychological empowerment on innovative work behavior: a moderated mediation model of informal learning and proactive behavior," Review of Managerial Science, Springer, vol. 18(12), pages 3695-3716, December.
    4. Ryusuke Ihara, 2011. "Agglomeration with the pros and cons of labor heterogeneity," ERSA conference papers ersa11p528, European Regional Science Association.
    5. Eduardo A. Haddad & Jesus P. Mena-Chalco, Otávio J.G. Sidone, 2016. "Produção Científica e Redes de Colaboração dos Docentes Vinculados aos Programas de Pós-graduação em Economia no Brasil," Working Papers, Department of Economics 2016_10, University of São Paulo (FEA-USP).
    6. Fumihiko Isada & Yuriko Isada, 2015. "Trans-nationalisation of a main office in a multinational firm," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(4), pages 15-40, November.
    7. Piazza, Mariangela & Mazzola, Erica & Perrone, Giovanni, 2022. "How can I signal my quality to emerge from the crowd? A study in the crowdsourcing context," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    8. Berliant, Marcus & Fujita, Masahisa, 2023. "Knowledge creation through multimodal communication," MPRA Paper 117452, University Library of Munich, Germany.
    9. Boons, Mark & Stam, Daan, 2019. "Crowdsourcing for innovation: How related and unrelated perspectives interact to increase creative performance," Research Policy, Elsevier, vol. 48(7), pages 1758-1770.
    10. Ryusuke Ihara & Shizu Yamamoto, 2016. "Role of tolerance in communication with diverse people," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 191-202, January.
    11. Masahisa Fujita, 2015. "Diversity and Culture in Knowledge Creation in Cities," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(1), pages 101-103.
    12. Laurent Bergé & Iris Wanzenböck & Thomas Scherngell, 2015. "Centrality of regions in R&D networks: Conceptual clarifications and a new measure," Cahiers du GREThA (2007-2019) 2015-31, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    13. Dirk Dohse & Robert Gold, 2014. "Determining the Impact of Cultural Diversity on Regional Economies in Europe. WWWforEurope Working Paper No. 58," WIFO Studies, WIFO, number 47204.
    14. Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2015. "Cultural diversity and plant-level productivity," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 85-96.
    15. Ryusuke Ihara & Shizu Yamamoto, 2016. "Role of tolerance in communication with diverse people," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 191-202, January.
    16. José M. Gaspar, 2018. "A prospective review on New Economic Geography," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 237-272, September.
    17. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    18. HAMAGUCHI Nobuaki & KONDO Keisuke, 2015. "Fresh Brain Power and Quality of Innovation in Cities: Evidence from the Japanese patent database," Discussion papers 15108, Research Institute of Economy, Trade and Industry (RIETI).
    19. Nagamachi, Kohei, 2015. "Team Production and the Allocation of Creativity across Global and Local Sectors," MPRA Paper 63422, University Library of Munich, Germany.
    20. Aistleitner, Matthias & Gräbner, Claudius & Hornykewycz, Anna, 2021. "Theory and empirics of capability accumulation: Implications for macroeconomic modeling," Research Policy, Elsevier, vol. 50(6).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:19037. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.