Top management team regional diversity and internationalization

Abstract

Cultural intelligence is one of the most widely researched topics in international business literature. However, to date, only cross-national differences have been examined. This research examines the unexplored relationship between top management teams’ (TMT) regional diversity and emerging market firms’ internationalization. Employing the cultural intelligence theory, we introduce a significant dimension of TMT diversity—regional diversity. Based on a sample of 542 firms, our results indicate that diversity in the regional family background of TMT and their work experience are positively associated with the internationalization of these firms. Furthermore, this relationship is positively moderated by the international experience of the TMT. Our findings offer several managerial and academic implications.