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The Role of Top Management Team in Oversea Location Choice: Evidence from Chinese Firms' Investments in European Industrial Clusters.
- Source :
- Emerging Markets Finance & Trade; 2022, Vol. 58 Issue 6, p1677-1687, 11p, 3 Charts
- Publication Year :
- 2022
-
Abstract
- This article investigates the role of firm's top management team (TMT) in its location strategy in oversea investment decision. From the perspective of the upper-echelon theory and knowledge-based view, we study how knowledge-related characteristics of TMTs, such as education background, foreign experience and R&D experience affect the firm's oversea location choice to invest in an industrial cluster. Using data of OFDI cases from Chinese firms to European sub-national regions from 2006 to 2016, we find that: (1) TMT's education background has a positive effect on firm's OFDI decision in industrial clusters; (2) TMT's foreign experience has a positive effect on firm's OFDI decision in industrial clusters; (3) TMT's R&D background increases the firm's likelihood to invest in industrial clusters. Our findings provide implications related to the effects of TMT characteristics on emerging market firms' oversea investment activities. [ABSTRACT FROM AUTHOR]
- Subjects :
- SENIOR leadership teams
INDUSTRIAL clusters
Subjects
Details
- Language :
- English
- ISSN :
- 1540496X
- Volume :
- 58
- Issue :
- 6
- Database :
- Complementary Index
- Journal :
- Emerging Markets Finance & Trade
- Publication Type :
- Academic Journal
- Accession number :
- 156294378
- Full Text :
- https://doi.org/10.1080/1540496X.2021.1920392