FOREIGN EXPERIENCE OF TOP MANAGEMENT TEAMS AND INTERNATIONAL DIVERSIFICATION STRATEGIES OF U.S. MULTINATIONAL CORPORATIONS

Author(s):  
RAKESH B. SAMBHARYA
2017 ◽  
Vol 55 (9) ◽  
pp. 1999-2017 ◽  
Author(s):  
Peng-Yu Li ◽  
Fang-Yi Lo

Purpose The purpose of this paper is to incorporate the resource-based perspective with upper echelon theory to examine the effect of top management teams’ (TMTs) managerial resources on international diversification. Design/methodology/approach The authors sampled 360 listed companies in the USA that operated in the information technology industry in 2009, the year after the financial crisis. Findings The findings show that TMTs’ tenure has a negative impact on international diversification but international experience exerts a positive impact on international diversification. Furthermore, TMTs’ educational background diversity and international experience contribute to a reduction in the negative effect of tenure on international diversification. Originality/value Prior studies have investigated the role of TMT in international diversification, but they pay less attention to the interactive effect of the variety of managerial resources on international diversification. In particular, the authors examined the effect of a variety of management resources on the level of international diversification under the uncertain environment.


2020 ◽  
Vol 12 (5) ◽  
pp. 2132
Author(s):  
Andrés F. Ugalde Vásquez ◽  
David Naranjo-Gil

Organizations are increasingly aware of the importance of managing the acquisition processes of new and sustainable knowledge, which allows them to increase performance. These knowledge-acquisition processes require top management teams to focus on the external environment to search for sustainable opportunities and initiatives. This spurs top teams to make strategic decisions that require more comprehensive managerial information, which is provided by management accounting systems. Our research analyzes how top management team composition facilitates the acquisition of new knowledge. Our management accounting paper also analyzes the mediating effect of the interactive use of management accounting systems (MASs) and their impact on sustainable firm performance. A survey was conducted among the main manufacturer firms in the Republic of Ecuador. Results were analyzed by using the partial least squares methodology, and they showed a positive effect for the interactive use of management accounting systems on sustainable knowledge-acquisition processes. Results also showed that knowledge acquisition increased firm performance through an interactive use of MASs.


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