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

Thomas Hutzschenreuter, Julian Horstkotte

Research output: Contribution to journalArticlepeer-review

74 Scopus citations

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.

Original languageEnglish
Pages (from-to)259-277
Number of pages19
JournalInternational Business Review
Volume22
Issue number1
DOIs
StatePublished - Feb 2013
Externally publishedYes

Keywords

  • Added cultural distance
  • Complexity
  • Experience
  • Information processing
  • Panel analysis
  • Performance
  • Top management teams

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