Internationalization of top management teams in Europe

One issue in the international business literature that has been virtually ignored is the internationalization of top management teams. This study examines the extent of national diversity in the composition of top management teams in two highly internationalized european countries, sweden and the netherlands. Results indicate that the national diversity of top management teams in these countries has not progressed to the same level as the internationalization of the companies at large

Veto rights in international joint venture boards

We investigate the determinants of partners’ veto rights in international joint ventures (IJVs) and study the scope of such rights. IJVs are complex exchanges subject to misalignments, and responses to them often cannot be conceived at the outset. The IJV board is a powerful device to facilitate mutual adjustment between partners. This adaptive capacity that the board endows an IJV can also give rise to a different set of concerns, however: its opportunistic use by a partner in control of the board. Such behavior, we argue, can be reined in by veto rights. Building on transaction cost economics, we posit that goal conflicts owing to partner competition and environmental uncertainty prompt the allocation of veto rights to partners. Concerns surrounding the maladaptive use of board control weaken when institutional safeguards are strong, reducing the need for veto rights. Findings from a survey of IJVs furnish evidence in support of the core proposition that veto rights can help parent firms address maladaptation. We conclude that veto rights can be an important element of partners’ arsenal when designing and governing IJVs based on comparative efficiency considerations

Top management teams in their national contexts

Since the mid-1980s, much research attention has been devoted to top management teams and their impact on the strategic behavior and performance of firms. In particular, this research has focused on the role of top managers’ background, values, and experiences in explaining the choices they make. So far, this research has largely failed to address the national context in which top management teams are formed and operate. Empirical studies have typically involved top management teams of U.S. firms. Other studies are rare, and when they exist, they usually do not take the national context into account. This paper explores the impact of national context characterized by society-specific value systems and institutions, on the composition, organization, and functioning of top management. We address three topics in particular: (1) national variations in the structure and practices of top management and their implications for managerial choices; (2) national governance systems that define and constrain the tasks and functioning of top management teams; and (3) national institutions that help to define managerial selection, promotion, and career patterns