Now showing 1 - 10 of 26
  • Publication
    The Curse of Extremes: Generalist Career Experience and CEO Initial Compensation
    Studies argue that generalist CEOs are more valued by the market for executive labor and receive higher initial compensation. Challenging this prevailing assumption, we acknowledge the drawbacks of extensive career mobility and predict an inverted U-shape relationship between CEO generalist career experience and CEO initial compensation. Integrating the generalism and specialization views of human capital, we postulate that at an initial level, the acquisition of experience-breadth from different firms and industries enables CEOs to broaden their knowledge-base, obtain a variety of skills, and thus increase their labor-market value and initial compensation. After a threshold, however, the accumulation of extensive levels of career generalism through frequent job-hopping across firm and industry contexts gradually causes a lack of experience-depth and insufficient career specialization – thereby triggering lower CEO market-value and initial pay. Data from 197 CEO appointments in large publicly traded firms support our predictions. Our results also show that the observed inverted U-shape relationship varies with factors nested at different layers of context – highlighting the contingent nature of this area of research.
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    Scopus© Citations 22
  • Publication
    Top Management Team Faultlines and Firm Performance: Examining the CEO-TMT Interface
    Prior research indicates that the relationship between top management team (TMT) faultlines and firm performance is equivocal. We shed new light on this topic by highlighting the moderating role of the CEO–TMT interface. Analyzing data from large international firms over the period 2005–2009 (347 firm-year combinations), we find that the performance effect of knowledge-based TMT faultlines is significantly altered when the leader of the TMT (i.e., the CEO): (a) socio-demographically resembles incumbent executives, (b) possesses a diverse career background, and (c) shares common socialization experience with other TMT members. Overall, our research reveals that different dimensions of the CEO-TMT interface play a pivotal role in determining the performance effects of knowledge-based TMT subgroups. Implications for upper echelons theory, team diversity, and strategic leadership research are discussed.
    Scopus© Citations 119
  • Publication
    Foreign executive appointments: A multilevel examination
    (Elsevier, 2014-11-22) ;
    Biemann, Torsten
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    As multinational enterprises (MNE) expand, their attachment to the country of origin is challenged by the need to adapt to an increasingly diverse geographical posture. We examine how these countervailing forces affect top management team (TMT) composition and test a model that associates foreign executive appointments with individual- and firm-level antecedents. Using multilevel data comprising 1,446 TMT appointments at 360 large European firms between 2001 and 2005, we show that individual experiential characteristics, the type of TMT function, prior performance of the MNE, and the MNE's overall degree of internationalization are associated with foreign TMT appointments. We discuss how our findings contribute to the international business literature and complement recent research on the internationalization of TMTs.
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    Regionalization strategy and performance : The moderating role of industry dynamism and top management team diversity
    This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT). This analysis is based on a cross-sectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005. Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and inter-regional TMT diversity. The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.
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    Scopus© Citations 21
  • Publication
    International experiential diversity and performance at project organizations: The case of national football teams
    This paper sheds further light on the link between diversity configurations in project teams and team performance. The paper draws upon detailed player background profiles and team performance data from the FIFA World Cup 2006, including profiles of the 736 players who participated in the tournament and performance data from the 64 matches played. Our findings highlight the need to carefully manage experiential diversity in project team settings in order to benefit from access to diverse tacit resources while at the same time avoiding that the integrative capacities of teams become overstretched. At the same time, we find little support for the notion that longevity of team membership is associated with higher performance in project teams. We derive implications for project team composition practices and discuss alternative interpretations of our findings
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    Scopus© Citations 7
  • Publication
    Transcending Borders with International Top Management Teams: A Study of European Financial MNCs
    (Elsevier, 2009-06-01) ;
    Nielsen, Sabina
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    This paper investigates how changes in firm degree of internationalization are associated with the configuration of top management teams (TMT) based on a dataset of 41 large European firms in the banking and insurance industry, including detailed career profiles of the 264 executives that were serving on the TMTs of these firms at year-end 2002. Our findings suggest firms tend to match top executive profiles to their strategies. Entry into new foreign markets and new cultural zones was found to be associated with higher levels of international capacity at TMT level, whereas changes in international posture per se are not related to TMT international capacity. We discuss the interplay between firm strategies and internal structures in the context of firm internationalization and suggest directions for future research on TMTs.
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  • Publication
    The Determinants and Effects of Board Nomination Committees
    (Springer, 2006-05-01) ; ;
    Tacheva, Sabina
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    Hu, Yan
    This article assesses the corporate governance-related antecedents of nomination committee adoption, and the impact of nomination committees' existence and their composition on board independence and board demographic diversity. We conducted a longitudinal study of board composition amongst 210 Swiss public companies from January 2001 through December 2003, a period during which the Swiss (Stock) Exchange (SWX) introduced new corporate governance-related disclosure guidelines. We find firms with nomination committees are more likely to have a higher number of independent and foreign directors, but not more likely to have a higher number of female board members. Further, the existence of nomination committees is associated with a higher degree of nationality diversity but is not related to board educational diversity. We also find that nomination committee composition matters in the nomination of independent and foreign, but not of female directors. Our results suggest that understanding different board roles and composition require a multi-theoretical approach, and that agency theory, resource-dependence theory and group effectiveness theory help to explain different aspects of board composition and effectiveness. Finally, the article discusses the concept of diversity and appropriate ways to study diversity in a boardroom context.
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    Scopus© Citations 121
  • Publication
    Top management team influence and discretion in foreign market entry mode decisions
    (Academy of International Business, 2013-07-05)
    Imbach, Mathias
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    How firms expand beyond their home country is one of the most fundamental questions in international business. Drawing on agency theory and taking into account particularities of the Indian study sample and context, we find that board monitoring of the TMT, which impacts executives' latitude of action, moderates the effects of strategic decision-making (SDM) and rational choice (RC) models on firms' market entry mode decisions. In the SDM model, the link between TMT international experience and a preference for lower control entry modes is stronger in environments with low TMT monitoring. In the RC model, the association between prior firm multinational experience and preference for high control entry modes is stronger in environments with high TMT monitoring. We discuss theoretical and practical implications of these findings in the context of internationalizing multinational enterprises from emerging markets.
  • Publication
    Composing teams to optimize the benefits of international experience diversity
    This paper contributes to a better understanding of the effects of experiential diversity in teams. Specifically, the link between diversity in team members' international experience backgrounds and team performance is examined from an information processing perspective. This paper addresses the conditions under which teams optimize the benefits of a greater pool of knowledge and perspectives at their disposal. A set of four hypotheses is developed and tested on a longitudinal dataset drawn from professional soccer teams in the German Bundesliga over a seven-year period. Findings show that a diverse international experience base is positively associated with team performance. This relationship is positively moderated by indicators of experiential team composition and managerial tenure. Specifically, performance gains of increasing international experience diversity are larger the more a team consists of members experienced in high quality settings, a team consists of members with narrow individual experience backgrounds, and a team is led by a longer tenured coach. Theoretical and practical implications of these findings are discussed together with future research directions.