Management International Review

, Volume 53, Issue 4, pp 513–534

In at the Deep End of Firm Internationalization

Nationality Diversity on Top Management Teams Matters
Research Article

DOI: 10.1007/s11575-012-0159-7

Cite this article as:
Kaczmarek, S. & Ruigrok, W. Manag Int Rev (2013) 53: 513. doi:10.1007/s11575-012-0159-7

Abstract

  • The purpose of this research is to examine the consequences of top management team (TMT) internationalization: why and under what conditions can TMT nationality diversity be beneficial?

  • On the basis of the upper echelons theory from the strategic leadership literature, the relationship between the TMT nationality diversity and firm performance in the strategic context of firm internationalization is investigated in moderated multiple regressions models (MMR) for a sample of Dutch, Swiss, and UK companies.

  • The study findings suggest that the TMT nationality diversity becomes advantageous only in firms with high degree of internationalization. Companies have to be strongly committed to foreign markets so that the benefits of the TMT nationality diversity can materialize.

  • The arising managerial implication is that the TMT nationality diversity can be a powerful tool in building a firm’s competitive advantage, provided that companies are strongly exposed to the international environment. The study also provides corroborative evidence that the search for moderating and mediating variables in the TMT demography research represents a step in the right direction.

Keywords

Firm internationalizationNationality diversityTop management teamUpper echelons theory

Copyright information

© Springer Fachmedien Wiesbaden 2012

Authors and Affiliations

  1. 1.Newcastle Business SchoolNorthumbria UniversityNewcastle Upon TyneUK
  2. 2.Research Institute for International ManagementUniversity of St. GallenSt. GallenSwitzerland