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Loss or Gain? The Moderating Role of Top Manager Teams in the Relationship between Political Hazards and Foreign Subsidiary’s Performance
Keywords: political hazards, subsidiary performance, TMTs, international experience
Abstract: When political hazards could be threats or opportunities for foreign subsidiary’s performance? Combing literature on political hazards and top management teams (TMTs), we argue that TMTs in the subsidiary (local TMTs) or dispatched from headquarter play distinctive roles in influencing whether multinational companies (MNCs) could reduce costs and take advantages of benefits associated with political hazards in their foreign operations. Using a panel dataset of 12,362 overseas subsidiaries across 54 countries during the period of 2004 to 2013, all hypotheses developed are supported.