Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms

C Boone, Boris Lokshin, H Guenter and Rene Belderbos

No 628565, Working Papers of Department of Management, Strategy and Innovation, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven

Abstract: We integrate insights from upper echelon theory and the literature on innovation and multinational corporations (MNCs) to develop a framework explaining when and why nationality diversity in top management teams (TMTs) affects corporate entrepreneurship—as evidenced by diversity in global knowledge sourcing—and through this innovation performance in MNCs. In a panel of 165 manufacturing MNCs based in 20 countries, we confirm that the positive effects of TMT nationality diversity on corporate entrepreneurship and innovation are only unleashed in TMTs with low social stratification and in MNCs located in home countries that are low in national power distance. Our study contributes to opening up the black box of the upper echelon’s strategic role in spurring entrepreneurship and innovation in MNCs embedded in different cultures.

Pages: 40
Date: 2018-10-23
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino and nep-sbm
Note: paper number MSI-1804
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Published in FEB Research Report MSI_1804, volume MSI_2018

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https://lirias.kuleuven.be/retrieve/519937 Published version (application/pdf)

Related works:
Journal Article: Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:msiper:628565

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