Foreign executive appointments: A multilevel examination

Greve, Peder; Biemann, Torsten; Ruigrok, Winfried

doi:10.1016/j.jwb.2014.10.012

Cited by 43 publications

(68 citation statements)

References 105 publications

(128 reference statements)

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“…They have theorized about aspects such as size (Carpenter et al, 2004;de Andres et al, 2005), gender (Terjesen and Singh, 2008;Westphal and Milton, 2000), and professional background or experience (Geletkanycz and Black, 2001;Kor and Misangyi, 2008;Papadakis and Barwise, 2002;Yoo and Reed, 2015) in general firm staffing, as well as nationality (Gong, 2006;Masulis et al, 2012;Oxelheim et al, 2013;van Veen and Marsman, 2008;van Veen et al, 2014) in the context of MNC staffing in particular. Other studies have focused on consequences, finding evidence for a link between board or top management team composition and company performance (Carpenter et al, 2004;Certo et al, 2006;Dalton et al, 1998), diversification (Greve et al, 2015;Sanders and Carpenter, 1998;Tihanyi et al, 2000) and market entry strategies (Nielsen and Nielsen, 2011) in MNCs. Such studies have clearly identified staffing as a key strategic instrument.…”

Section: Literature Backgroundmentioning

confidence: 99%

Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries

Müllner

Klopf

Nell

2017

Journal of International Management

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words]We investigate a multinational corporation's (MNC) decision to appoint host-country national (HCN) managers to foreign subsidiaries based on the institutional context of and familiarity with the host country. HCN managers are commonly associated with specialized knowledge, superior responsiveness, and higher legitimacy. Yet, we argue that local familiarity of HCNs can also be perceived as risky or harmful by MNC parents. We analyze how formal and informal institutions affect the trade-off between positive effects and potential costs associated with HCN managers ("Local allies" vs. "Trojan horses"). We find that legal institutions protect foreign MNCs from potential costs, encourage the use of HCNs and reinforce their benefits. Corruption and corruption distance, however, increase perceived costs associated with HCN managers up to a point at which they outweigh their perceived benefits.

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Section: Literature Backgroundmentioning

confidence: 99%

Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries

Müllner

Klopf

Nell

2017

Journal of International Management

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“…From Proposition 1, the higher international mobility of managers in recent decades (see Greve et al 2015) can thus provide a possible explanation for the concurrent increase in banker compensation. This explanation complements the one given in the existing literature, which has focused on increased competition in national banking sectors as an explanation for the rise in managerial pay (Thanassoulis, 2012;Bannier et al, 2013).…”

Section: Regime Ii: Bonus Payment and Fixed Wagementioning

confidence: 96%

“…3 More generally, there is a substantial literature indicating that the international mobility of top managers has grown substantially over the past two decades (e.g. Greve et al, 2015). Focusing specifically on the finance industry, Greve et al (2009) investigate the nationality of board executives in 41 large European firms in the banking and insurance industry and find that 26% of all executives in the sample are non-nationals.…”

Section: Introductionmentioning

confidence: 99%

Bonus taxes and international competition for bank managers

Gietl¹,

Haufler²

2018

European Economic Review

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We analyze the competition in bonus taxation when banks compensate their managers by means of fixed and incentive pay and bankers are internationally mobile. Banks choose bonus payments that induce excessive managerial risk-taking to maximize their private benefits of existing government bailout guarantees. In this setting the international competition in bonus taxes may feature a 'race to the bottom' or a 'race to the top', depending on whether bankers are a source of net positive tax revenue or inflict net fiscal losses on taxpayers as a result of incentive pay. A 'race to the top' becomes more likely when governments' impose only lax capital requirements on banks, whereas a 'race to the bottom' is more likely when bank losses are partly collectivized in a banking union.

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“…Recent IB research has begun to shed light on the cognitive differences between key decision-makers involved in internationalization processes (Maitland and Sammartino, 2015). Yet thus far scholars continue to overemphasize "the objective characteristics of the situation" (Finkelstein and Hambrick, 1996: 20) at the expense of a deeper understanding of decision makers' cognition, such as that related to foreignness (Greve et al, 2015). This is a striking omission given that the cognitive frames of foreign TMT members are likely to differ in systematic ways from those of domestic TMT members.…”

Section: Tmt Internationalization Tmt Cognition and Firm-level Intementioning

confidence: 99%

“…In our analysis, we excluded the CEO from our operationalization of the TMT to be able to control for the specific impact of a foreign CEO as suggested in recent research (Ghemawat and Vantrappen, 2015). In our study, we focus on the distinction between domestic and foreign TMT members (Greve et al, 2015). Thus, the variable TMT internationalization corresponds to the ratio of the number of foreign members to total members of the TMT.…”

Section: Independent Variable-second Stagementioning

confidence: 99%

Top Management Team Internationalization and Firm-level Internationalization: The Moderating Effects of Home-region Institutional Diversity and Firm Global Focus

Pisani

Muller²,

Bogățan

2018

Journal of International Management

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The factors that determine firms' levels of internationalization remain a focal area of international business research. Within this research stream, studies building on the upper echelons theory have investigated the influence of the demographic characteristics of the top management team (TMT) on firms' international expansion. However, the literature to date has overlooked the TMT's overall degree of internationalization as a key driver of firm-level internationalization. In our paper, we argue that by having self-selected into careers abroad, foreign TMT members by definition have a higher cognitive tolerance of foreignness than domestic TMT members do. We theorize that foreign TMT members' higher cognitive tolerance for foreignness enhances the overall TMT's level of international attention and international trust, thereby facilitating strategic decisions that favor firm-level internationalization. Additionally, we propose two key contingencies that attenuate this relationship: the institutional diversity of the firm's home region and the firm's global focus. Analysis of Fortune Global 500 firms supports the hypothesized relationship between TMT internationalization and firm-level internationalization, as well as the two moderation effects.

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Foreign executive appointments: A multilevel examination

Cited by 43 publications

References 105 publications

Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries

Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries

Bonus taxes and international competition for bank managers

Top Management Team Internationalization and Firm-level Internationalization: The Moderating Effects of Home-region Institutional Diversity and Firm Global Focus

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