Strategic change: the impact of senior foreign managers, firm size and uncertainty avoidance

Abstract

Purpose

This study aims to examine how senior foreign executives in a top management team catalyse strategic change in firms that originated from emerging markets (EMs). It further examines the moderating effects of organisational size and uncertainty avoidance (UA) on the positive relationship between senior foreign manager and strategic change in an organisation.

Design/methodology/approach

The panel data econometrics and multilevel analyses were adopted to run the model. The author tests hypotheses on 263 emerging market firms (EMFs), originating from nine EMs.

Findings

Empirical results reveal that senior foreign managers are active agents who can promote and implement strategic change in an organisation. They possess a different set of values, knowledge and experiences that can trigger strategic change. In addition, firm size and UA weaken the relationship between senior foreign manager ratio and strategic change of a firm..

Practical implications

This study indicates that recruiting committees of EMFs should consider hiring senior foreign managers to foster a higher degree of strategic change. Nevertheless, firm size and UA may impose implementation difficulties for senior, foreign managers. As a result, the focal firm should be flexible and open to change.

Originality/value

This study aims to contribute to strategic change and top management team internationalisation literature by promoting the role of senior foreign managers and national culture on strategic change.

Citation

Kalasin, K. (2021), "Strategic change: the impact of senior foreign managers, firm size and uncertainty avoidance", Review of International Business and Strategy, Vol. 31 No. 1, pp. 38-61. https://doi.org/10.1108/RIBS-03-2020-0023