No abstract

This article investigates the role of firm's top management team (TMT) in its location strategy in oversea investment decision. From the perspective of the upper-echelon theory and knowledge-based view, we study how knowledge-related characteristics of TMTs, such as education background, foreign experience and R&D experience affect the firm's oversea location choice to invest in an industrial cluster. Using data of OFDI cases from Chinese firms to European sub-national regions from 2006 to 2016, we find that: (1) TMT's education background has a positive effect on firm's OFDI decision in industrial clusters; (2) TMT's foreign experience has a positive effect on firm's OFDI decision in industrial clusters; (3) TMT's R&D background increases the firm's likelihood to invest in industrial clusters. Our findings provide implications related to the effects of TMT characteristics on emerging market firms' oversea investment activities.