TMT international orientation and firm internationalisation: evidence from Italy

Abstract

Several studies have highlighted a significant relationship between the degree of international orientation of a firm's Top Management Team (TMT) and the firm's international development. Previous analyses on this issue have been conducted using samples of firms from countries (such as the UK, USA and Switzerland) whose national culture is characterised by a low degree of uncertainty avoidance (UA). The purpose of this paper is to extend the available knowledge to include firms operating in cultures with a high degree of UA, and which may perceive the internationalisation process as a threat. Four hypotheses are suggested and tested using data from the Italian firms listed on the Italian Stock Exchange - FTSE MIB index. Our findings show that the national diversity of TMT members is positively related to firm internationalisation. Moreover, the international working experience and international educational experience of TMT members are important, but only when they are combined.