Performance effects of international expansion processes: The moderating role of top management team experiences

Thomas Hutzschenreuter and Julian Horstkotte

International Business Review, 2013, vol. 22, issue 1, 259-277

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.

Keywords: Added cultural distance; Complexity; Experience; Information processing; Panel analysis; Performance; Top management teams (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:22:y:2013:i:1:p:259-277

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DOI: 10.1016/j.ibusrev.2012.04.006

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