The Contingent Effect of TMT International Experience on Firms’ Internationalization Speed

Abstract

Drawing on upper echelons theory, we argue that there will be an inverted U-curve-shaped relationship between top management teams’ (TMTs’) level of international experience and a firm’s internationalization speed. Accounting for the role of executive job demands highlighted in upper echelons theory, we further suggest that competitive pressure, product diversification, and geographic scope moderate the relationship between TMT international experience and internationalization speed by increasing the demands of TMT managers’ jobs. Using data on the international expansion of 91 retailers between 2003 and 2012, we find empirical support for the inverted U-curve-shaped effect of TMT international experience and the moderating role of competitive pressure. We find no moderating effect of product diversification or geographic scope.