Foreign-origin managers and FDI location choice

IF 8.6 1区 管理学 Q1 BUSINESS Journal of International Business Studies Pub Date : 2024-09-17 DOI:10.1057/s41267-024-00726-2
Massimiliano Coda Zabetta, Ernest Miguelez, Francesco Lissoni, Sarah Hegarty
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Abstract

Building upon the upper echelons theory of organizations as applied to internationalization strategies, we investigate the impact of foreign-origin top management team (TMT) members on their companies’ location choice. We propose that a manager-from-target effect may exist, by which a manager’s knowledge of their country of origin increases the likelihood of choosing that country as a target. We expect it to be stronger for acquisitions than for greenfield investments, the inputs of foreign-origin managers being more relevant in the first case. Based on a large sample of foreign direct investment from 2013 to 2019, and using name analysis to identify TMT members’ origins, we find that the effect is present in both establishment modes but larger and more robust for acquisitions. It is also larger in companies with less diverse TMTs, for which targeting one manager’s country of origin instead of others’ may be less likely to cause conflict. Future research should explore whether investments in locations suggested by managers from the target country outperform others. If this is the case, it implies that recruiting foreign-origin top managers can improve a company’s internationalization strategy via better location choices.

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外国管理人员和外国直接投资地点选择
基于应用于国际化战略的组织上层理论,我们研究了来自国外的高层管理团队(TMT)成员对其公司地点选择的影响。我们提出,可能存在一种来自目标公司的经理人效应,即经理人对其原籍国的了解会增加选择该国作为目标公司的可能性。我们预计这种效应在并购中会比在新建投资中更强,因为外国经理人的投入在第一种情况下更为重要。基于 2013 年至 2019 年的大量外国直接投资样本,并使用名称分析来识别 TMT 成员的来源,我们发现两种设立模式都存在这种效应,但并购的效应更大、更稳健。在TMT不太多样化的公司中,这种效应也更大,因为在这些公司中,针对某个经理人的原籍国而不是其他经理人的原籍国可能不太容易引发冲突。未来的研究应探讨在目标国经理人建议的地点投资是否会优于其他地点。如果是这样的话,这就意味着招聘外国出身的高层管理人员可以通过更好的地点选择来改善公司的国际化战略。
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来源期刊
CiteScore
16.20
自引率
10.30%
发文量
84
期刊介绍: The Selection Committee for the JIBS Decade Award is pleased to announce that the 2023 award will be presented to Anthony Goerzen, Christian Geisler Asmussen, and Bo Bernhard Nielsen for their article titled "Global cities and multinational enterprise location strategy," published in JIBS in 2013 (volume 44, issue 5, pages 427-450). The prestigious JIBS Decade Award, sponsored by Palgrave Macmillan, recognizes the most influential paper published in the Journal of International Business Studies from a decade earlier. The award will be presented at the annual AIB conference. To be eligible for the JIBS Decade Award, an article must be one of the top five most cited papers published in JIBS for the respective year. The Selection Committee for this year included Kaz Asakawa, Jeremy Clegg, Catherine Welch, and Rosalie L. Tung, serving as the Committee Chair and JIBS Editor-in-Chief, all from distinguished universities around the world.
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