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.

No abstract

PurposeThis paper proposes a framework for director evaluation in the context of Chinese state-owned enterprises (SOEs), taking into account the influences of traditional and modern Chinese ideologies.Design/methodology/approachFollowing the Delphi method, a series of semi-structured interviews were conducted with Chinese SOE directors.FindingsThe framework used has been validated by examining seven dimensions of virtue and four dimensions of competence functions in Chinese SOEs. Effective and representative characteristics of each dimension are identified through interviews.Originality/valueFirst, through this research, indicators of virtue have been materialized and those of competence have been specified in a broader range. Second, this research provides advice for training of candidate directors whose experience were in private firms before they step in as SOE directors.