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

Cao, Xuebing

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.

Citation

Cao, X. (2019). Heterogeneity in top management teams and outward foreign direct investment: evidence from Chinese listed companies. Frontiers of Business Research in China, 13, 16 - 16. https://doi.org/10.1186/s11782-019-0063-0

• Journal Article Type: Article
• Acceptance Date: Jul 23, 2019
• Publication Date: Sep 26, 2019
• Journal: Frontiers of Business Research in China
• Print ISSN: 1673-7326
• Publisher: Brill Academic Publishers
• Peer Reviewed: Peer Reviewed
• Volume: 13
• Article Number: 16
• Pages: 16 - 16
• DOI: https://doi.org/10.1186/s11782-019-0063-0
• Publisher URL: http://doi.org/10.1186/s11782-019-0063-0