International experience as a microfoundation of foreign subsidiary performance: A multilevel model

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Marketa Rickley, Assistant Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: In multinational companies, international experience by managers is considered a source of competitive advantage. Yet we know little about whether the positive consequences of personal international experience persist when aggregated in top management teams (TMTs). Are certain experiential, relational, or structural TMT configurations more effective at converting personal knowledge from international experience into organizational performance? Drawing on knowledge integration and small groups research, we develop a multilevel model of compositional emergence to define how personal international experiences aggregate from the individual to the collective. We then explore how TMT differences in experiential, relational, and structural configurations of international experience affect performance. We test our predictions using a cross-national and multilevel dataset on foreign-owned banks. The data include detailed information on top managers’ demographic, educational, and professional backgrounds (N = 270 TMTs, nested within 60 foreign subsidiaries, and 28 multinational banks), ten years of financial performance data, and covariates from different levels (e.g., TMT, subsidiary, MNC, home country, host country). By theoretically and empirically linking individual differences in international experience to subsidiary performance through team-level knowledge integration mechanisms, we contribute to the search for microfoundations of competitive advantage using the knowledge- and resource-based views in an international context.

Additional Information

S. Taneja (Ed.), Proceedings of the Eighty-first Annual Meeting of Academy of Management, 6 pages.
Language: English
Date: 2021
top management teams (TMTs), international experience

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