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The Effects of Managerial Tie Traits on Foreign-Market Commitment

김미혜|곽주영|Sining Xu
한국사회과학협의회 (Korean Social Science Research Council)|2022.12|Korean Social Science Journal|제49권 제2호|pp. 87-102|DOI 10.36033/kssj.49.2.202212.87

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키워드

ChinaForeign-market commitmentschool tieregional tiecoworker tieassociation tieinter-province connection
주제분류사회과학일반

초록

Research on foreign entries stresses top management team (TMT) characteristics in decision-making. We select school tie, regional tie, coworker tie, and association tie as TMT characteristics. Resource-based and upper echelons theories suggest that TMT shares similar values and perceptions in its informal ties. At the same time, a lack of organizational diversity makes it difficult to acquire diverse resources in a dynamic environment. Thus, we hypothesize that the homogeneity of TMT informal ties reduces firms’ commitment to foreign markets. Also, we examine how inter-province networks moderate the relationship between informal ties and commitment. Our analysis of private-owned enterprises listed on the China Stock Exchange in Shanghai and Shenzhen from 2017 to 2019 shows that regional, coworker, and association ties negatively affect commitment to foreign markets. The negative impact of regional and association ties can be weakened through official connections outside the local province.

Abstract

Research on foreign entries stresses top management team (TMT) characteristics in decision-making. We select school tie, regional tie, coworker tie, and association tie as TMT characteristics. Resource-based and upper echelons theories suggest that TMT shares similar values and perceptions in its informal ties. At the same time, a lack of organizational diversity makes it difficult to acquire diverse resources in a dynamic environment. Thus, we hypothesize that the homogeneity of TMT informal ties reduces firms’ commitment to foreign markets. Also, we examine how inter-province networks moderate the relationship between informal ties and commitment. Our analysis of private-owned enterprises listed on the China Stock Exchange in Shanghai and Shenzhen from 2017 to 2019 shows that regional, coworker, and association ties negatively affect commitment to foreign markets. The negative impact of regional and association ties can be weakened through official connections outside the local province.

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