Review of International Business and Strategy最新文献

{"title":"Inward foreign direct investment in emerging economies: a review and future research avenues","authors":"Sharmistha Chowdhury, R. R. Sharma, Yang Yu","doi":"10.1108/ribs-03-2022-0033","DOIUrl":"https://doi.org/10.1108/ribs-03-2022-0033","url":null,"abstract":"\u0000Purpose\u0000Given the surge in foreign direct investment (FDI) in emerging economies (EEs) during the past four decades, inward FDI (IFDI) has spawned a rich, scholarly conversation on the topic. This paper aims to review the literature regarding EE IFDI determinants and the impact of IFDI on those economies. It also aims to provide some future research directions.\u0000\u0000\u0000Design/methodology/approach\u0000A systematic review with thematic analysis of 372 articles on the topic, published between 1991 and 2021, is undertaken. In addition to using the relevant keywords, the snowballing approach was used to manually track the literature.\u0000\u0000\u0000Findings\u0000This review highlights EE IFDI determinants such as institutional quality, corruption and intellectual property rights, regional trade agreements and distances, formal and informal institutions and their interactions, national and subnational diversity and policy expectations. Further, IFDI impacts EEs both at macro- and micro-levels. This review also indicates a substantial increase in research during the period 2000 to 2010 and a decline thereafter; it also indicates Africa and Latin America being under-researched, with a focus on Africa recently increasing.\u0000\u0000\u0000Research limitations/implications\u0000Rich research opportunities exist in examining the mechanisms (mediators) and conditions (moderators) that influence relationships between the antecedents of IFDI and their outcomes. Further opportunities exist in examining the role of the context and in undertaking a multilevel analysis.\u0000\u0000\u0000Originality/value\u0000This review provides an understanding of what influences multinational enterprises’ FDI to EEs and how it impacts those economies. It also raises potential future research questions. It provides a holistic understanding of the chosen scope and domain.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46074664","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Accelerated internationalization of SMEs and microfoundations of dynamic capabilities: towards an integrated conceptual framework","authors":"Hela Chebbi, Majdi Ben Selma, Kamal Bouzinab, Andrew Papadopoulos, Alexie Labouze, Robert Desmarteau","doi":"10.1108/ribs-12-2021-0174","DOIUrl":"https://doi.org/10.1108/ribs-12-2021-0174","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>Striving for growth since their early stages, many small and medium enterprises (SMEs) are increasingly adopting an entrepreneurial behavior based on a rapid and early international expansion. Although some extant research have been done on the dynamic capabilities of SMEs’ accelerated internationalization–born global (BG) SMEs, no study was, to the best of the authors’ knowledge, carried on the microfoundations underlying this phenomenon. This paper aims to fill this gap in the literature and contribute to the growing theory development of SME’s microfoundations.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This paper proposes an integrated conceptual framework to better identify the microfoundations that influence born global SMEs internationalization by integrating individual, structural and processual – the microfoundations approach within the dynamic capabilities of sensing, seizing and reconfiguring.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Our propositions argue that born global SMEs are characterized by dynamic capabilities based on a combination of some individual (manager’s human and social capital, such as its personal orientation, experiences, cognition and intuition), process (market learning, technology development) and structural (agility, communication/coordination) factors that helps a lot in the acceleration of the internationalization process.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>Empirical study should be done to enrich the conceptual material.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>To identify some international opportunities, companies should rely on the entrepreneurial orientation of its managers, its experience and network as well as the market-related learning and technological processes. The managerial cognition is important to seize opportunities while the manager’s human capital is needed to reconfigure resources while internationalizing rapidly.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>This research shows that individual attributes are important but insufficient to accelerate the internationalization process. Some individual characteristics are more useful in sensing international opportunities rapidly, such as manager’s international entrepreneurial, past experience and network, However, the managerial cognition is important to seize opportunities, whereas the manager’s human capital is needed to reconfigure resources while internationalizing rapidly.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>Born global firms must develop several dynamic capabilities to foster their accelerated early international development. This paper gives insights about the individual, structural and processual of sensing international opportunities, seizing and reconfiguring resources and competencies for born globals.</p><!--/ Abstract__block -->","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138506040","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Degree of internationalisation and firm performance: the flattening role of organisational slack resources","authors":"T. Luu, Lan Anh Trinh, Thanh Thi Phuong Nguyen, Ngoc Linh Chi Ngo, Nguyen Phuong Nhi Le, Nhat Vi Vu","doi":"10.1108/ribs-03-2022-0030","DOIUrl":"https://doi.org/10.1108/ribs-03-2022-0030","url":null,"abstract":"\u0000Purpose\u0000This study aims to analyse the impact of the degree of internationalisation (DOI) on firm performance (FP), with the moderating role of organisational slack resources, namely, absorbed slack human resources, absorbed financial slack resources and unabsorbed slack resources, in the context of Asian emerging markets.\u0000\u0000\u0000Design/methodology/approach\u0000Data includes 45 companies and 225 observations in 2014–2018. The authors adopted the generalised least squares method to test their hypotheses.\u0000\u0000\u0000Findings\u0000DOI negatively influences FP, indicating that the link between DOI and FP is not U-shaped but relatively linear. Absorbed human resources and absorbed slack financial resources significantly enhance FP, absorbing resources associated with DOI and FP. Unabsorbed slack resources play a minor role in mitigating the deleterious impact of DOIs on FP.\u0000\u0000\u0000Practical implications\u0000Firms in an emerging market should begin exploring and expanding into overseas markets with characteristics similar to the domestic market. The firm should optimise the benefits of slack resources by appropriately allocating resources to strategic operations.\u0000\u0000\u0000Originality/value\u0000This study reveals the beneficial effect of organisational slack resources on the DOI-FP relationship via the lens of the resource-based view.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47155730","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Exploring corruption impacts on MNE performance through the lens of risk and uncertainty","authors":"Dawn L Keig, L. Brouthers","doi":"10.1108/ribs-03-2022-0037","DOIUrl":"https://doi.org/10.1108/ribs-03-2022-0037","url":null,"abstract":"\u0000Purpose\u0000This paper aims to apply a risk/uncertainty lens to corruption to explore how different types of corruption (formal vs informal) in a multinational enterprise’s (MNE) operating environment have different relationships to firm performance.\u0000\u0000\u0000Design/methodology/approach\u0000This paper uses a portfolio approach to measure the formal and informal corruption impacts of an MNE’s entire set of operating locations and test the hypotheses using both accounting- and market-based measures of performance on a sample of 648 firms.\u0000\u0000\u0000Findings\u0000This study hypothesizes and finds that because formal corruption represents risk, it is typically included in the a priori evaluations of trade-offs between market attractiveness and costs made by MNEs prior to market entry, higher formal corruption in the firm’s environment is positively related to its financial performance. Conversely, the uncertainty associated with the generally intangible and pervasive nature of informal corruption prevents similar, accurate cost consideration before entering the market, resulting in a negative relationship between higher levels of informal corruption and firm performance.\u0000\u0000\u0000Originality/value\u0000This study provides unique empirical support for the notion that MNEs can both gain and lose by investing in corrupt institutional environments, grounded in an understanding of the differences between risk and uncertainty, reinforcing the importance of considering the potential impacts of both the formal and informal dimensions of corruption in a firm’s operating environment.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48120845","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Firm innovation and technical capabilities for enhanced export performance: the moderating role of competitive intensity","authors":"Mengdi Zhang, Mohd Haniff Jedin","doi":"10.1108/ribs-01-2022-0015","DOIUrl":"https://doi.org/10.1108/ribs-01-2022-0015","url":null,"abstract":"\u0000Purpose\u0000Drawing on the resource-based view (RBV) and structure–conduct–performance (SCP) paradigm perspectives, this study aims to investigate the influence of the innovation and technical capabilities of exporting organisations on their export performance moderate by competitive intensity.\u0000\u0000\u0000Design/methodology/approach\u0000Primary data were collected from 162 Chinese manufacturer–exporter companies operating across China. The conceptual framework of this study, which incorporated the impact of RBV and SCP paradigm determinants on export performance through the interaction effect of competitive intensity, was tested using structural equation modelling (Smart-PLS).\u0000\u0000\u0000Findings\u0000Results show that the technical and innovation capabilities can increase its export success in international markets. Furthermore, this research finds that competitive intensity moderates the positive relationship between technical capability and export performance but not the relationship between innovation capability and export performance.\u0000\u0000\u0000Originality/value\u0000This study presents a holistic assessment of the export performance of manufacturer–exporter enterprises by accounting for the overlooked effect of organisational capabilities through the moderating function of competitive intensity. This study has far-reaching consequences for export academics and practitioners, including the fundamental concept of an internationalizing small- and medium-sized enterprises, especially the manufacturers.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44551128","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Influential dynamic capabilities and small and medium enterprises' internationalization success: mediating role of international entrepreneurial orientation","authors":"Moza Rashed AlShehhi, Jacob Cherian, S. Farouk, M. Al Nahyan","doi":"10.1108/ribs-12-2021-0171","DOIUrl":"https://doi.org/10.1108/ribs-12-2021-0171","url":null,"abstract":"\u0000Purpose\u0000This study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of small and medium-sized enterprises (SMEs) in the context of the United Arab Emirates (UAE).\u0000\u0000\u0000Design/methodology/approach\u0000Adopting a quantitative approach, the researchers designed a questionnaire based on an extensive literature review and used structural equation modeling to ascertain the mediating role of international entrepreneurial orientation in the relationship between influential dynamic capabilities and SMEs' internationalization success.\u0000\u0000\u0000Findings\u0000The findings of this study indicate that international entrepreneurship orientation mediates the relationship between dynamic capabilities and internationalization success, as the indirect impact value is greater than the direct effect value for the relationship. Because the existence of the mediator in the model has no significant impact on the model's direct effects, full mediation is the most appropriate mediation type.\u0000\u0000\u0000Research limitations/implications\u0000This study has some limitations. One of the major limitations of this study relates to the limited finances of the incumbent, as the questionnaires were delivered to the respondents via email, but the incumbent had to follow up with phone calls and reminders. Second, this study mainly relied upon primary data and analysis based on the use of qualitative techniques; in future, researchers can incorporate qualitative aspects using interviews and other qualitative analysis tools and techniques. Third, limitation relates to sample size, as the sample size of research was above 500 but was limited to just UAE. Future researchers can conduct a cross-sectional analysis to determine the mediating role of different factors for the promotion of internationalization.\u0000\u0000\u0000Practical implications\u0000This study highlights the fundamental factors affecting the internationalization of SMEs in the UAE context, which has rarely been discussed. This study broadens the scope of internationalization by discussing its impact on SMEs' financial and non-financial performance.\u0000\u0000\u0000Social implications\u0000This study will contribute to the advancement of current information about the elements that impact the internationalization of SMEs and develop a new framework for analyzing SMEs' internationalization in the UAE.\u0000\u0000\u0000Originality/value\u0000This study contributes to the literature by developing and testing a framework based on a comprehensive literature review to include different factors and their constructs that impact the potential internationalization of SMEs in developing economies. This study identifies and addresses a research gap regarding the relationship between internationalization and company performance among UAE SMEs.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46272629","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation","authors":"L. Takyi, V. Naidoo, Courage Simon Kofi Dogbe, Edward O. Akoto","doi":"10.1108/ribs-01-2022-0001","DOIUrl":"https://doi.org/10.1108/ribs-01-2022-0001","url":null,"abstract":"\u0000Purpose\u0000This study aims to assess the potential mediating effects of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation.\u0000\u0000\u0000Design/methodology/approach\u0000This study was a cross-sectional design, where the structured questionnaire was used in gathering data from 301 indigenous Ghanaian firms. The path estimation was conducted by running structural equation modelling in AMOS v.23.\u0000\u0000\u0000Findings\u0000It was concluded that government support had a significant positive effect on Ghanaian indigenous firms’ degree of internationalisation. Formal network was found to partially mediate the relationship between government support and indigenous firms’ degree of internationalisation. Finally, it was concluded that informal networks had no mediating effect.\u0000\u0000\u0000Research limitations/implications\u0000One limitation is that the effect of the government support and network strategy was only explored on indigenous exporters, meaning that exporters which did not fall within the definition of indigenous firms were excluded from the study. Future studies could conduct a comparative study on the same variables, using indigenous and non-indigenous firms.\u0000\u0000\u0000Practical implications\u0000It is recommended that Ghanaian exporters should participate in government training and workshop programmes focussing on building export business strategies and networking to improve export activities.\u0000\u0000\u0000Originality/value\u0000This study’s unique contribution is its investigation of how networking portfolio, including formal and informal ties, helps explain the nexus between government support and the internationalisation of local firms in the developing market, such as Ghanaians.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-10-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41262317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Dynamic capabilities and FDI in conflict zones: the role of diversification and stock management capabilities","authors":"Dina M. Abdelzaher, N. Ramadan","doi":"10.1108/ribs-11-2021-0150","DOIUrl":"https://doi.org/10.1108/ribs-11-2021-0150","url":null,"abstract":"\u0000Purpose\u0000Despite the increased level of national conflict around the world, outward foreign direct investment (FDI) targeting these areas has increased. This study aims to adopt a dynamic capability lens to examine the relationship between firm capabilities and the level of conflict in their FDI portfolio. The paper argues that conflict zones may be an attractive destination for a subset of firms, given their capability profile.\u0000\u0000\u0000Design/methodology/approach\u0000The authors draw from a sample of US Fortune 500 firms (2019) to examine their FDI destinations; specifically, they collected data on the locations of their foreign subsidiaries, which resulted into a final sample of 118 diversified US firms. The model was analyzed using ordinary least squares multiple regression to predict the extent to which their FDI portfolios have ongoing domestic and international conflict and the impact of expansion in such conflict-stricken markets on firm financial performance (ROA).\u0000\u0000\u0000Findings\u0000The authors find that firms with greater international geographical diversification capabilities, as depicted by their geographic spread, and those with greater local stock management capability, as depicted by their initial public offering maturity, are more likely to launch subsidiaries in high ongoing conflict zones. Furthermore, the authors find that while it may be unprofitable for firms to seek FDI in high-conflict zones, firms that operate in strategic industries (manufacturing, infrastructure, natural resource extraction) experienced positive performance. This can be attributed to the fact that firms operating in these sectors are more likely to directly profit in the reconstruction/rebuilding of such conflict-stricken markets.\u0000\u0000\u0000Originality/value\u0000While previous literature focused on macro-level factors, this study sought to highlight firm-level factors that determine FDI decision in conflict zones. The authors capture different dimensions/sources of firms’ dynamic capability, one resulting from foreign experience (i.e. geographic diversification) and the other from local experience (i.e. domestic stock management) to assess how each correlate with multinational corporations’ level of conflict in their FDI portfolio. Furthermore, the authors contribute to the understanding of the relationship between expansion in conflict zones and firm performance and highlight that industry does matter. Implications from this study highlight the importance of building risk management capabilities to handle not just expansion in conflict zones but also during challenging times like those brought about by pandemics.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46873506","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The mediating role of investment image in the effect of country image on investment intention: an empirical study on Egypt","authors":"Aya Mohamed Izzularab, Farouk Radwan, Ramadan Gad, Peter Björk","doi":"10.1108/ribs-06-2021-0082","DOIUrl":"https://doi.org/10.1108/ribs-06-2021-0082","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the effect of country image on investment intention and the role of investment image as a mediating factor. Both cognitive and affective country image dimensions were addressed to assess the functional and emotional aspects of the country image and their effects on investment intention. The current study targeted Egypt, as one of the developing countries, from the point of view of Nordic investors.\u0000\u0000\u0000Design/methodology/approach\u0000Partial least squares structural equation modeling was used to test the proposed model using data collected from 124 top managers of different companies in the clean energy sector in Nordic countries.\u0000\u0000\u0000Findings\u0000The results showed that cognitive and affective country images are positively related to the investment image, and that investment image is positively correlated with the investment intention. The investment image has a full mediating role in the relationship between cognitive and affective country images and investment intention.\u0000\u0000\u0000Originality/value\u0000The past few decades have witnessed a growing interest in country image research; however, limited studies have investigated the impact of country image on foreign investment intention. This study adds to the understanding for the potential contribution of the investment image of developing countries in the decision-making process for the foreign direct investment.\u0000","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46478131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The impact of foreign directors and firm performance on strategic change","authors":"Ihssan Samara, I. Yousef","doi":"10.1108/ribs-10-2021-0137","DOIUrl":"https://doi.org/10.1108/ribs-10-2021-0137","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the joint effect of foreign directors (FDs) and firm performance on the corporate strategic change.\u0000\u0000\u0000Design/methodology/approach\u0000A theoretical framework linking foreign directors, firm performance and strategic change is proposed and tested. This study uses a sample of longitudinal data from 958 US listed firms over the period 2010–2018. The basic model of study first tests whether there is a direct relationship between FDs and level of strategic change. It then incorporates firm performance as a moderating variable, testing its effect on the relationship between foreign director and strategic change.\u0000\u0000\u0000Findings\u0000Consistent with the study’s expectations, the empirical findings indicate that FDs rich in appropriate experience are associated with superior strategic change, measured both in terms of variation in firm strategy over time and deviation from industry norms. The findings confirm that FDs are a salient driver of strategic change. The strength of the effect, however, depends on the firm performance.\u0000\u0000\u0000Research limitations/implications\u0000This paper has implications for effective global leadership development based on international appointments. First, directors can benefit from being assigned to work in foreign countries so that they are exposed to a wide range of experiences and can learn to overcome culture shock. Second, posting directors to foreign countries can improve their international knowledge and enhance various competencies related to creativity, leadership and problem-solving. By demonstrating that the board’s characteristics can play a role in corporate strategy development, the current study thus has implications for both study and practice with regard to board composition. The number of seats on any given board is finite, and each individual director is thus expected to not only monitor top management but also to apply their knowledge and relevant experience in service to the company’s ambitions. Except in cases where high firm performance leads to strategic persistence, the results suggest that greater levels of FDs correlate positively with strategic change.\u0000\u0000\u0000Practical implications\u0000The practical implications of this paper pertain to director recruitment and selection. First, the findings echo support for the inclusion of members with greater levels of international experience on boards and top management teams. It seems that, despite the importance of this characteristic, directors at US companies often lack substantial experience abroad (Carpenter and Westphal, 2001). A possible reason for this could be that internationally experienced employees otherwise lack the social capital necessary for promotion to directorships because of time spent stationed away from the firm’s headquarters. It is thus essential for companies to create networking opportunities for directors assigned to foreign offices.\u0000\u0000\u0000Originality/value\u0000Although previous research has provided some insight into how chief e","PeriodicalId":45046,"journal":{"name":"Review of International Business and Strategy","volume":null,"pages":null},"PeriodicalIF":3.1,"publicationDate":"2022-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49487594","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}