Antecedents and performance effect of managerial misperception of institutional differences

Clarissa E. Weber, Dominik Chahabadi and Indre Maurer

Journal of World Business, 2020, vol. 55, issue 1

Abstract: This study examines managerial misperception of institutional differences between countries—the deviation of managers’ perceived differences from actual ones. Drawing on a bounded-rationality perspective and an information-based view, we theorize about the effect and contextual antecedents of managerial misperception of country differences. Examining data from 186 managerial assessments confirms a negative relationship between managerial misperception and firms’ host-country performance, providing evidence for the relevance of this construct for international-management research and practice. Furthermore, in line with our theory, we find support for a direct impact of variables determining information-access opportunity and information-processing complexity as contextual antecedents of managerial misperception.

Keywords: Managerial misperception; Country differences; Institutional differences; Bounded rationality; Information-based view (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:worbus:v:55:y:2020:i:1:s1090951618305613

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DOI: 10.1016/j.jwb.2019.101018

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