Top management teams’ managerial resources and international diversification: The evidence under an uncertain environment

Abstract

Purpose

The purpose of this paper is to incorporate the resource-based perspective with upper echelon theory to examine the effect of top management teams’ (TMTs) managerial resources on international diversification.

Design/methodology/approach

The authors sampled 360 listed companies in the USA that operated in the information technology industry in 2009, the year after the financial crisis.

Findings

The findings show that TMTs’ tenure has a negative impact on international diversification but international experience exerts a positive impact on international diversification. Furthermore, TMTs’ educational background diversity and international experience contribute to a reduction in the negative effect of tenure on international diversification.

Originality/value

Prior studies have investigated the role of TMT in international diversification, but they pay less attention to the interactive effect of the variety of managerial resources on international diversification. In particular, the authors examined the effect of a variety of management resources on the level of international diversification under the uncertain environment.

Citation

Li, P.-Y. and Lo, F.-Y. (2017), "Top management teams’ managerial resources and international diversification: The evidence under an uncertain environment", Management Decision, Vol. 55 No. 9, pp. 1999-2017. https://doi.org/10.1108/MD-06-2016-0364