Cross-national diversity: implications for international expansion decisions

Abstract

This project examined the relationship of national diversity in team makeup on an international expansion decision. Decisions of homogeneous and nationally diverse teams were compared in an experimental study. Nationally diverse teams took significantly longer to reach decisions, and considered significantly more options than did homogeneous groups. Homogeneous, Canadian teams ranked home expansion options significantly more attractive than did nationally diverse teams. The results of the study suggest that it is important for firms to understand and use cross-national diversity when considering international expansion.