Related Experiment Video
Updated: Jul 20, 2025
08:27
Applying an eMASS Customization Program as a Research Tool to Evaluate Consumer Benefits
Published on: September 27, 2019
6.9K
CEO-TMT overseas experience differences and firm performance: A self-categorization theory perspective
1School of Business, Shanghai Dianji University, Shanghai, China.
Heliyon
|August 4, 2023
Summary
CEO and top management team (TMT) overseas experience differences negatively impact firm performance. Hometown connectedness, state ownership, and environmental dynamics can mitigate these adverse effects, improving business outcomes.
Area of Science:
- Business Administration
- Organizational Behavior
- International Business
Background:
- Upper Echelons Theory and Self-Categorization Theory provide frameworks for understanding executive influence on firm strategy.
- CEO-TMT overseas experience differences can create strategic misalignments and affect decision-making.
- Understanding these dynamics is crucial for optimizing firm performance in a globalized market.
Purpose of the Study:
- To empirically investigate the relationship between CEO-TMT overseas experience differences and firm performance.
- To examine the moderating roles of hometown connectedness, ownership nature, and environmental dynamics.
- To provide insights for multinational corporations on managing diverse executive backgrounds.
Main Methods:
- Utilized data from Chinese manufacturing listed companies between 2012 and 2021.
- Employed quantitative analysis to assess the impact of experience heterogeneity on performance.
- Applied regression analysis to test moderating effects.
Main Results:
- Significant negative relationship found between CEO-TMT overseas experience differences and firm performance.
- Hometown connectedness positively moderates the relationship, lessening the negative impact.
- State ownership and higher environmental dynamics were found to mitigate the negative effects.
Conclusions:
- Heterogeneity in overseas experience among top management can be detrimental to firm performance.
- Leveraging internal social capital (hometown connectedness) and adapting to external factors (ownership, environment) can buffer negative impacts.
- Strategic management of executive diversity is key for firms operating in dynamic, international markets.
Keywords:
CEO-TMT overseas experience differencesEnvironmental dynamicsFirm performanceHometown connectednessOwnership natureMore Related Videos
08:24The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
Published on: August 25, 2023
757
07:34Perceptual and Category Processing of the Uncanny Valley Hypothesis' Dimension of Human Likeness: Some Methodological Issues
Published on: June 3, 2013
17.4K
Related Concept Videos
02:45Self-Discrepancy Theory
18.4K
One influential perspective on what motivates people's behavior is detailed in Tory Higgin's self-discrepancy theory (Higgins, 1987). He proposed that people hold disagreeing internal representations of themselves that lead to different emotional states.
18.4K
03:00Self-Evaluation: Self-Enhancement and Self-Verification
5.2K
Social psychologists have documented that feeling good about ourselves and maintaining positive self-esteem is a powerful motivator of human behavior (Tavris & Aronson, 2008). In the United States, members of the predominant culture typically think very highly of themselves and view themselves as good people who are above average on many desirable traits (Ehrlinger, Gilovich, & Ross, 2005). Often, our behavior, attitudes, and beliefs are affected when we experience a threat to our...
5.2K
01:19Self-Concept
56
Self-concept is the cognitive and emotional understanding individuals hold about their identity. It evolves through various developmental stages, beginning in infancy and maturing as children grow. This concept influences how individuals perceive their abilities, interact with others, and manage challenges throughout life.
Infancy and Emerging Recognition
During infancy, self-concept is virtually nonexistent. Babies do not distinguish themselves as separate entities and often mistake their...
Infancy and Emerging Recognition
During infancy, self-concept is virtually nonexistent. Babies do not distinguish themselves as separate entities and often mistake their...
56
02:16Stereotype Content Model
14.8K
The Stereotype Content Model (SCM) was first proposed by Susan Fiske and her colleagues (Fiske, Cuddy, Glick & Xu, 2002; see also Fiske, 2012 and Fiske, 2017). The SCM specifies that when someone encounters a new group, they will stereotype them based on two metrics: warmth—or that group’s perceived intent, and how likely they are to provide help or inflict harm—and competence—or their ability to carry out that objective. Depending on the warmth-competence...
14.8K
04:49Robbers Cave
14.3K
During the 1950s, the landmark Robbers Cave experiment demonstrated that when groups must compete with one another, intergroup conflict, hostility, and even violence may result. At the Oklahoman summer camp, two troops of boys—termed the Rattlers and the Eagles—took part in a week-long tournament. During this time, their negativity culminated in derogatory name-calling, fistfights, and even vandalism and destruction of property. However, this work also revealed that such tension...
14.3K
00:52Social Proof
27.7K
Social proof is a form of persuasion based on comparison and conformity. People compare their behavior and actions to what others are doing and will change to conform to do what their peers do.
27.7K