CEO international experience: Effects on strategic change and firm performance

• 成果类型: Article
• 署名作者: Le, Son; Kroll, Mark
• 署名单位: University of Louisiana System; Louisiana Technical University; University of Texas System; University of Texas Rio Grande Valley; University of Texas System; University of Texas Rio Grande Valley
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-017-0080-1
• 发表日期: 2017
• 页码: 573-595
• 关键词: international experience; STRATEGIC CHANGE; ceo; CEO succession; social and cognitive learning; conditional process analysis

摘要

Despite the growing importance of CEOs' international experience (IE), we have yet to gain sufficient insights into its conceptualization and effect on firm outcomes. Based on prior research and work experience models, we suggest a new framework for measuring IE, including three components: length of time, number of countries, and cultural distance, along with their interactions. Drawing upon social and cognitive learning theories, we explore the impact of CEOs' IE on two outcomes: strategic change and firm performance. We argue that IE components affect the two outcomes by enhancing executives' international knowledge and general competencies. While international knowledge may affect firm performance directly, general competencies may affect firm performance both directly and indirectly through strategic change. Using a sample of 387 new CEOs, we found that time abroad had a positive effect on strategic change and firm performance, while number of countries and cultural distance positively moderated these relationships. Additionally, we also found that these components affected firm performance both directly and mediated through strategic change. Our findings have important theoretical implications for the conceptualization and impact of CEOs' IE and practical implications for executive development and promotion.