International work experience: Is it really accelerating the way to the management board of MNCs?

Stefan Schmid and Dennis J. Wurster

International Business Review, 2017, vol. 26, issue 5, 991-1008

Abstract: International work experience is often claimed to be a prerequisite for managers in an MNC. This paper investigates how international work experience affects those managers who reach upper echelons. Drawing on both human capital theory and elite theory, we argue that stays abroad not only have beneficial, but also adverse effects on managers’ ascent to the top. By analysing the careers of 212 management board members from Germany, we find that once a certain threshold of international work experience is exceeded, being away from home impedes managers’ long-term career advancement. However, it is not only longer stays abroad that show a negative time effect; we are also able to reveal that being in countries with high geographic and cultural distance to the home country significantly decelerates managers’ speed of being appointed to the management board. Our findings demonstrate that conflicting interests exist between MNCs and high potentials who consider an international career. We stress that these conflicts call for being solved in managerial practice.

Keywords: Internationalisation of top management; International managers; Management boards; International work experience; International career; Elite theory; Human capital theory; Upper echelons (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:26:y:2017:i:5:p:991-1008

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DOI: 10.1016/j.ibusrev.2017.03.006

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