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International experience and imitation of location choices: The role of experience interpretation and assessment and its board-level microfoundations
journal contribution
posted on 2023-06-07, 07:56 authored by Ettore Spadafora, Claudio Giachetti, Makafui Kwame Kumodzie-Dussey, B ElangoResearch summary Drawing on the information-based imitation and information-processing perspectives, we examine how experience interpretation and assessment—and in particular its board-level microfoundations—affects the relationship between a firm's international experience and its decision to imitate the market leader's location choices. Our results show that the negative relationship between international experience and imitation of location choices is positively moderated by board turnover, board age, and board equity ownership but not influenced by board gender diversity. These findings advance our understanding of the interplay between information-based motives for imitation and firms' information processing and organizational learning. Specifically, we contribute to research on the effect of international experience on firms' mimetic behavior by pointing out the relevance of experience interpretation and assessment from a microfoundations perspective. Managerial summary Our study provides indications for executives attempting to predict competitors' global strategy. When it comes to location choices, we find that companies with less international experience are more likely to follow the market leader, while those internationally experienced are more likely to follow their own path. Moreover, lower board turnover, relatively younger directors, and smaller equity ownership can favor the articulation and exploitation of the lessons offered by prior international experiences, thus further reducing the company's inclination to imitate the leader's location choices. Firms seeking an independent path toward internationalization can therefore use corporate governance—and in particular board-level factors—to enhance their ability to interpret and assess their international experience.
History
Publication status
- Published
File Version
- Accepted version
Journal
Global Strategy JournalISSN
2042-5805Publisher
WileyExternal DOI
Department affiliated with
- Strategy and Marketing Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2022-09-20First Compliant Deposit (FCD) Date
2022-09-20Usage metrics
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