Options
Twice as smart? The importance of managers' formative-years international experience for their international orientation and foreign acquisition decisions
Date Issued
2014-01-02
Date Available
2016-10-03T15:30:40Z
Abstract
This study examined how top management team's (TMT) international orientation influences perceptions of environmental uncertainty and how these perceptions impact international strategic decisions, in particular regarding ownership stakes taken in foreign acquisitions. We highlighted the need for the concept of TMT international orientation to encompass executives' formative-years' international experiences along with their international career experiences and nationalities. Empirical tests based on a sample of 2122 international acquisitions completed by 561 UK firms over the period 1999–2008 showed that TMT international orientation positively moderated the negative impact of cultural differences and host country risk on acquisition ownership stakes. The results underscored the importance of considering decision-makers' attributes due to their experiences at a young age, beyond their demographic characteristics or professional experience, in the context of international strategic choices. We also discussed some implications of one of the possible consequences of executives' formative international experience, namely biculturalism, for international business.
Sponsorship
University College Dublin
Other Sponsorship
Economic and Social Research Council
Type of Material
Journal Article
Publisher
Wiley
Journal
British Journal of Management
Volume
25
Issue
1
Start Page
40
End Page
57
Copyright (Published Version)
2012 the Authors
Language
English
Status of Item
Peer reviewed
This item is made available under a Creative Commons License
File(s)
Owning collection
Scopus© citations
84
Acquisition Date
Mar 28, 2024
Mar 28, 2024
Views
1711
Acquisition Date
Mar 28, 2024
Mar 28, 2024
Downloads
763
Last Month
9
9
Acquisition Date
Mar 28, 2024
Mar 28, 2024