Top team diversity, internationalization and the mediating effect of international alliances

Abstract

This study examines the mediating effect of international alliances for the relationship between TMT (top management team) job-related diversity (educational, functional background, outside industry experience and international exposure) and firm internationalization. We argue that firms with greater TMT diversity will use more international alliances, resulting in higher firm internationalization. Based on a sample of 226 US firms during the period 1988-1994, we find that international alliances partially mediate the relationship between TMT international exposure diversity and firm internationalization. However, we do not find international alliances to mediate the relationships between other forms of TMT diversity and firm internationalization. We discuss implications and directions for future research. © 2006 British Academy of Management.