Session 335

Internationalization and Strategic Decisions

Track O

Date: Monday, September 22, 2014

Track G

Time: 08:00 – 09:15

Paper

Room: Estancia 311


Session Chair:

  • Whitney Douglas Fernandez, San Diego State University

Title: Interlocking Directorates and Operational Internationalization of U.S. IPO firms: 2008-2012

Authors

  • Orhun Guldiken, Manhattan College
  • Daanish Pestonjee, University of Arkansas
  • Izzet Sidki Darendeli, California State University, East Bay

Abstract: We use upper echelon and board capital theories to examine how an IPO firm’s operational internationalization – the percentage of its revenues derived from foreign markets – is a function of the extent of international involvement of other firms on whose boards the IPO firm’s top managers and directors serve. Data collected from 184 U.S. IPO firms listed in NYSE or NASDAQ from 2008 to 2010 reveal that the greater the international involvement of other firms on whose boards an IPO firm’s directors sit, the greater the operational internationalization of the IPO firm. Moreover, the results show that the experience of top managers and directors interact with each other in driving the IPO firm’s operational internationalization. This study extends earlier work by suggesting that interlocking directorates shape an IPO firm’s operational internationalization.

Title: International Board Capital and Firm Performance: The Moderating Roles of Internationalization Stage and Scope

Authors

  • Whitney Douglas Fernandez, San Diego State University
  • Sumit Kundu, Florida International University

Abstract: This study combines insights from internalization theory with resource dependence theory to build and test theoretical arguments regarding board capital, multinationality, and performance. We argue that boards’ international human and social capital can provide the necessary resources to address the challenges associated with operating in foreign markets. Specifically, we argue that board capital in the form of local networks, international prominence, and depth of experience will be more important at early stages of international expansion. We further argue that the importance of directors’ breadth of international experience increases as firms enter later stages of internationalization and increase the scope of their international operations. Using a panel of S&P 500 firms observed from 2004-2011, we find general support for the aforementioned hypotheses.

Title: Share Price Gaps in Cross Listings: A Measure of Foreign-Market Legitimacy

Authors

  • Feibo Shao, Oklahoma State University
  • Scott Johnson, Oklahoma State University

Abstract: This study explores firm-level factors that influence foreign-market legitimacy, which is measured by share price gaps using a sample of Hong Kong listed firms that are also cross-listed at US. We focus on the following four factors: board structure, demographical characteristics of directors and executives, compensation structure, and firm age. The preliminary analysis shows firms have more foreign-market legitimacy (as indicated by smaller price gaps) when firms have higher percentages of directors from the foreign market countries, and that price gaps will be smaller for firms with a longer history.

Title: Strategic Decision Making in International Firms: Effect of Top Management Team’s Internationalization on Strategic Decisions

Authors

  • Akbar Azam, National University of Computer and Emerging Sciences
  • Cristina Boari, University of Bologna
  • Fabiola Bertolotti, University of Modena and Reggio Emilia

Abstract: The managers of international firms have to be comprehensive and quick in international strategic decision making in dealing with complex international environment and global competition. One way for international firms to deal with this conflicting requirement is the internationalization of their Top Management Teams (TMT). We argued that international experience and international ties of an internationalized TMT of an international firm affects its ability to make comprehensive and fast international strategic decisions.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 311: The Power of Power: The Role of Power and Politics in Strategy Processes
Session 386: Entrepreneurial Corporate Governance
Sun: 11:15 – 12:30
Session 476: The Dark Side of Strategic Leadership and Governance
Sun: 15:45 – 17:00
Session 435: What Happens After the CEO Has (Been) Gone?
Sun: 17:15 – 18:30
Session 611: Strategic Leadership and Governance IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 458: Those at the Top Matter!
Mon: 11:00 – 12:15
Session 336: CEO Roles, Frames, and Traits
Mon: 14:45 – 16:00
Session 331: CEO Compensation: What we Know, What we Need to Study
Mon: 16:30 – 17:45
Session 337: Power at the Top - The Influence of Directors
Session 411: Ownership and Governance
Tue: 08:00 – 09:15
Session 428: Managing External Dependencies
Session 467: Putting Pressure on the CEO
Tue: 11:00 – 12:15
Session 465: The Importance of Corporate Governance
Tue: 15:30 – 16:45
Session 429: Director Selection and Influence
Tue: 17:15 – 18:30
Session 431: Agents, Principals, and Owners
Session 432: Upper Echelons Revisited

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 389: Managing the Multinational Organization in an Increasingly Complex World
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Session 390: Local Determinants of Competitive Advantage and Disadvantage
Sun: 11:15 – 12:30
Session 2: Offshore Outsourcing, Dynamic Capabilities, and the Changing Nature of Firm Boundaries
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 371: Inter and Intra Organizational Learning Across Borders: A Knowledge Management Perspective
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 603: Global Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 379: Emerging Markets: Understanding the Importance of Context
Mon: 11:00 – 12:15
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 373: Global Diversification: Governance and Performance Implications
Mon: 14:45 – 16:00
Session 375: Changing External Environments: How do Multinationals Respond?
Session 381: Firm boundaries in Multinational Organizations: Antecedents and Consequences
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 374: Antecedents and Consequences of Multinational Location Decisions
Session 382: Drivers of Multinational Performance:What, Where and When?
Tue: 08:00 – 09:15
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 376: Headquarters Subsidiary Relationship: New Approaches to an Old Question
Session 384: Multinational Location Decisions: New Approaches Across Different Perspective
Tue: 15:30 – 16:45
Session 263: Innovation Models in Emerging Economies
Session 377: Organizing Assets Across Borders: Drivers and Consequences
Session 385: Multinational firms and the External Environment: The Role of Institutions
Tue: 17:15 – 18:30
Session 378: Global Outsourcing & Offshoring: Implications for Multinational Decisions


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