A temporal perspective on the relationship between top management team internationalization and firms' innovativeness

Abstract

This study examines whether top management team (TMT) internationalization is positively related to firm innovativeness. Besides focusing on the accumulation of top managers' international knowledge and capabilities, we explore the influence of moderators reflecting temporal concerns at three levels: CEO age, TMT tenure, and firm age. Combining upper echelons theory with innovation literature and using a sample of large stock-listed German firms, we demonstrate that TMT internationalization can increase firm innovativeness. This relationship is context-dependent on the age of the CEO. Overall, this paper sheds light on the antecedents of firm innovativeness and the consequences of increasingly international TMTs.

Top managers in the digital age: Exploring the role and practices of top managers in firms' digital transformation

“…Despite the scarcity of research, related research foci provide initial indications for top managers' role in the digital transformation, such as studies associating top managers with innovation outcomes or change processes. For example, innovation scholars found that TMTs directly influence innovation in firms by determining the firm's innovation strategy (Elenkov, Judge, & Wright, 2005; Talke, Salomo, & Kock, 2011; Talke, Salomo, & Rost, 2010) and resource commitment (Wrede & Dauth, 2020). Additionally, they recognize new business opportunities (Shepherd, Mcmullen, & Ocasio, 2016; Yukl, 2010).…”

“…In fact, prior research found significant relationships between top managers and firms' commitment to the status quo (Hambrick, Geletkanycz, & Fredrickson, 1993) and corporate strategic change (Wiersema & Bantel, 1992). Besides, scholars suggest that top managers play a crucial role in firms' innovation efforts (Damanpour, 1991; Smith & Tushman, 2005; Wrede & Dauth, 2020). We assume that all these aspects represent critical elements in the digital transformation, too.…”

Top managers' attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium‐sized enterprises

“…Saeed and Ziaulhaq (2019) highlight top managers' experience as the best strategy of the internationalization process. One of the most recent studies conducted by Wrede and Dauth (2020) claims that top management demographic factors significantly influence the internationalization process of firms.…”

“…Research also exhibited a positive relationship between the financial literacy of the top management and their participation in the national level projects, and they are confident and responsible (Santos, 2017). Additionally, a positive significant relationship is found between the top management team, innovation, and internationalization (Wrede & Dauth, 2020). Given these arguments, it is expected that the demographics of the top management are positively related to their participation in the projects of CPEC; therefore, our first set of the hypothesis is as follows:H1 Age of the top managers/owners is positively related to participation in CPEC.H2 Education of the top managers/owners is positively related to participation in CPEC.H3 Experience of the top managers/owners is positively related to the participation in CPEC.H4 Financial literacy of the top managers/owners is positively related to the participation in CPEC.…”

The influence of management team continuation on inefficient investment after family firms inheritance

“…In theory, what is known about this topic is that executive team represents the upper echelons of a family firm, and their central role is undeniable throughout the family business literature (Dallura, 2019). As the key personnel who are responsible for and implement company strategies, the executive team controls organizational resources (Blanco-Alcántara, Díez-Esteban, & Romero-Merino, 2018), obtains market information (Michaela & Tobias, 2020), breeds entrepreneurial capabilities (Barroso-Castro, Villegas-Periñan, & Casillas-Bueno, 2016), and plays a vital role in the entire decision-making process of the enterprise. Especially in family firms, the executive team represents the foremost intersection between the family and the business (Binacci, Peruffo, Oriani, & Minichilli, 2016), and considering the interest the family has in preserving its influence (Morgan & Gomez-Mejia, 2014), the top executives on this team have significant influence on the company's results (Beckman, 2006).…”