Diversity & internationalization: The case of boards and TMT's

Using a mixed US and European sample where both the board and TMT units are analyzed at the same time, we test the variables age, tenure and functional background.We extend the information/decision making perspective (Williams & O’Reilly, 1998) to both TMTs and boards by analyzing them as separate but related entities. In line with our hypotheses we find a positive effect on internationalization for functional background diversity of both boards and TMTs.Contrary to our expectations longer TMT tenure and younger board age also have a positive effect on internationalization.

Research highlights▶ Functional Background diversity of both boards and top management teams (TMTs) have a positive relationship with firm internationalization. ▶ Longer TMT tenure has a positive relationship with firm internationalization. ▶ Younger board age has a positive relationship with firm internationalization.