Learning from directors' foreign board experiences

Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs

“…Managers who have worked with international firms are able to transform their knowledge and ideas in an efficient way that enables a firm to gain superior performance [46]. Learning from foreign firms is deemed very important and a helpful strategy for underdeveloped firms as new ideas and experience are shared [47]. It is also discussed that international experience provides two major benefits, strategic change and high performance.…”

Corporate Multinationality and Acquirer Returns

“…The internalization theory, for example, posits that MNCs possess certain valuable intangible assets (e.g., technological know-how effective, experienced and dedicated management) which can be exploited to increase their value (Buckley et al, 2014;Morck and Yeung, 1992). For most MNCs, a potential source of their capabilities is the better business knowledge and experience fostered by learning from the diversity in foreign market environments in which they operate (Iliev and Roth, 2018;Aktas et al, 2011). Overall, combining the resource-based theory with the internalization theory suggests that MNCs should, on average, enjoy competitive advantage from their special (intangible) resources and competencies, and can leverage this advantage to earn a premium in their M&A activities.…”

“…Due to the size/resource advantage of MNCs, they can attract top managers from across the globe, who are experienced in negotiating and successfully completing acquisitions (Miletkov et al, 2017;Masulis and Mobbs, 2014). Conyon et al (2018) and Iliev and Roth (2018) suggest that managerial foreign experience, emanating from specialised foreign expertise and foreign networks, are more valuable to firms than general managerial skills which may be common to all firms.…”

Do CEOs' Outside Directorships Affect the Performance of Their Own Firms?

“…The authors find that directors with foreign nationality contribute to board diversity and that this diversity is positively associated with firms' international market operations and operating performance. Iliev and Roth (2018) focus on directors' foreign board experiences, and find that companies converge to the governance characteristics and board practices of foreign firms through these directors. This learning channel is stronger for firms domiciled in less-developed governance markets, suggesting a spillover of better governance practices.…”