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Top Management Team Characteristics and Strategic Changes in International Diversification

The Case of U. S. Multinationals in the European Community

Chapman University

Manuel Becerra

Instituto de Empresa

This study examined the relationship of top management team (TMT) composition to strategic changes in international diversification of a sample of U. S. multinationals in Europe during the 1980s. The findings indicate that international diversification of U. S. multinationals in Europe increased and that certain TMT demographics were significantly associated with such change. Specifically, the results indicate that greater TMT organizational tenure was positively associated and TMT core functional specialization negatively associated with increases in international diversification. A top management team’s cognitive perspectives as reflected in team demographic characteristics influence the degree of change in international diversification of the multinationals in the sample.

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				M. A. Hitt, L. Tihanyi, T. Miller, and B. Connelly International Diversification: Antecedents, Outcomes, and Moderators Journal of Management, December 1, 2006; 32(6): 831 - 867. [Abstract] [PDF]