Growing the Business in the Regions: TMT Member's Regional Responsibility and Regional Performance
Type
conference paper
Date Issued
2023
Author(s)
Abstract
Studies find that some multinational enterprises (MNEs) pursue business opportunities globally while others focus on certain regions. Firm-level factors such as technological advantages and complexity management may contribute to this difference, but the results are not conclusive. This paper argues that MNE top executives’ regional responsibilities and successful role enactment also influence the development of MNE’s footprint in different regions. Our analysis with data from international automotive companies’ regional sales development from 2003 to 2019 showed that top management team (TMT) member’s regional responsibility positively contributes to development of regional performance when the executive does not have parallel corporate functional responsibilities. Meanwhile, regional economic growth and the leadership from a foreign CEO strengthen this positive effect of regional heads in TMT. We discuss how our findings enrich the understanding of MNE geographic scope and contribute to the literature of regional management as well as foreign executives.
Language
English
Keywords
regional strategy
regional head
TMT
role multiplicity
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Name
Growing the Business in the Regions_TMT Member’s Regional Responsibility and Regional Performance.pdf
Size
495.26 KB
Format
Adobe PDF
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