Heterogeneity in top management teams and outward foreign direct investment: evidence from Chinese listed companies

Shuai Meng (), Jiayan Yan () and Xuebing Cao ()
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Shuai Meng: Renmin University of China
Jiayan Yan: Nanjing Audit University
Xuebing Cao: Keele University

Frontiers of Business Research in China, 2019, vol. 13, issue 1, 1-28

Abstract: Abstract Drawing upon the knowledge-based view and team learning, we investigated how heterogeneity in top management teams (TMTs) in China influences global expansion strategies. Using panel data from Chinese listed firms from 2008 to 2014, we found that TMT functional background heterogeneity could positively affect firms’ commitment to outward foreign direct investment (OFDI), as the diversification of TMT members can enrich the team’s knowledge, facilitate efficient team learning, and enhance the decision-making capacity on overseas expansion. However, tenure heterogeneity may hinder knowledge acquisition and team learning among TMT members, hence undermining firms’ OFDI commitment.

Keywords: Top management teams (TMTs); Tenure heterogeneity; Outward foreign direct investment (OFDI); Knowledge-based view (KBV); Team learning; Multinational enterprise (MNE) (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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DOI: 10.1186/s11782-019-0063-0

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