Challenges in internationalization of R&D teams: Impact of foreign technocrats in top management teams on firm innovations.

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Date: May 2021
Publisher: Elsevier B.V.
Document Type: Report; Brief article
Length: 253 words

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Keywords Innovation; Internationalization; Top management teams (TMTs); Double jeopardy hypothesis; Narcissism of minor difference theory Abstract This study explores two reasons for why and when firm innovation may not benefit from the presence of foreign technocrats in top management teams, who represent a 'minority-in- minority' status due to their membership of two minority sub-groups (foreigners and technology experts). First, foreign technocrats may face greater social barriers to exert their human capital because their minority-in-minority status brings about twice as much pressure from the majority (the double jeopardy hypothesis). Second, the similarity resulting from the overlap of the two executive groups may render their sub-group peers apprehensive about a loss of self-identity, thus leading to horizontal hostility (the narcissism of minor difference theory). Using a study of 1635 Chinese manufacturing firms to compare the joint effects of similar sub-group peers and CEOs, we find that the overlap of two groups is more likely to play a positive role when these two groups are more heterogeneous. Author Affiliation: (a) Business School, Sun Yat-Sen University, Guangzhou, China (b) Curtin Business School, Curtin University, Perth, Australia (c) Business School, Liaoning University, Shenyang, China (d) Discipline of International Business, The University of Sydney Business School, Sydney, Australia * Corresponding author at: Business School, Sun Yat-sen University, No. 135 Xingangxi Road, Haizhu District, Guangzhou, Guangdong Province 510275, China. Article History: Received 21 December 2018; Revised 11 June 2019; Accepted 12 June 2019 Byline: Yameng Zhang [zhangym96@mail.sysu.edu.cn] (a,*), Piyush Sharma [piyush.sharma@curtin.edu.au] (b), Yekun Xu [xuyekun@lnu.edu.cn] (c), Wu Zhan [zhan.wu@sydney.edu.au] (d)

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Gale Document Number: GALE|A656345357