Technological competence and international diversification; The role of managerial incentives

Laszlo Tihanyi; Robert E. Hoskisson; Richard A. Johnson; William P. Wan

doi:10.1007/s11575-009-0002-y

Technological competence and international diversification; The role of managerial incentives

Laszlo Tihanyi
, Robert E. Hoskisson
, Richard A. Johnson
, William P. Wan

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

22 Citations (Scopus)

Abstract

This paper shows that the role of managerial incentives is highlighted by a relatively complex relationship between technological competence and international diversification. By studying a sample of Standard & Poor's 500 member firms, we explore the relationships between technological competence, managerial pay, and international diversification. Results indicated a curvilinear relationship (an inverted U-shape) between technological competence and international diversification. In line with agency theory, contingent pay (stock options and bonuses) was positively related to international diversification. Beyond these direct effects, both contingent and non-contingent pay (cash compensation) moderated the relationship between technological competence and international diversification. © Gabler-Verlag 2009.

Original language	English
Pages (from-to)	409-431
Journal	Management International Review
Volume	49
Issue number	4
DOIs	https://doi.org/10.1007/s11575-009-0002-y
Publication status	Published - 2009
Externally published	Yes

Research Keywords

Corporate governance
Innovation
International strategy
Managerial compensation

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10.1007/s11575-009-0002-y

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title = "Technological competence and international diversification; The role of managerial incentives",

abstract = "This paper shows that the role of managerial incentives is highlighted by a relatively complex relationship between technological competence and international diversification. By studying a sample of Standard \& Poor's 500 member firms, we explore the relationships between technological competence, managerial pay, and international diversification. Results indicated a curvilinear relationship (an inverted U-shape) between technological competence and international diversification. In line with agency theory, contingent pay (stock options and bonuses) was positively related to international diversification. Beyond these direct effects, both contingent and non-contingent pay (cash compensation) moderated the relationship between technological competence and international diversification. {\textcopyright} Gabler-Verlag 2009.",

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author = "Laszlo Tihanyi and Hoskisson, \{Robert E.\} and Johnson, \{Richard A.\} and Wan, \{William P.\}",

year = "2009",

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language = "English",

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pages = "409--431",

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TY - JOUR

T1 - Technological competence and international diversification; The role of managerial incentives

AU - Tihanyi, Laszlo

AU - Hoskisson, Robert E.

AU - Johnson, Richard A.

AU - Wan, William P.

PY - 2009

Y1 - 2009

N2 - This paper shows that the role of managerial incentives is highlighted by a relatively complex relationship between technological competence and international diversification. By studying a sample of Standard & Poor's 500 member firms, we explore the relationships between technological competence, managerial pay, and international diversification. Results indicated a curvilinear relationship (an inverted U-shape) between technological competence and international diversification. In line with agency theory, contingent pay (stock options and bonuses) was positively related to international diversification. Beyond these direct effects, both contingent and non-contingent pay (cash compensation) moderated the relationship between technological competence and international diversification. © Gabler-Verlag 2009.

AB - This paper shows that the role of managerial incentives is highlighted by a relatively complex relationship between technological competence and international diversification. By studying a sample of Standard & Poor's 500 member firms, we explore the relationships between technological competence, managerial pay, and international diversification. Results indicated a curvilinear relationship (an inverted U-shape) between technological competence and international diversification. In line with agency theory, contingent pay (stock options and bonuses) was positively related to international diversification. Beyond these direct effects, both contingent and non-contingent pay (cash compensation) moderated the relationship between technological competence and international diversification. © Gabler-Verlag 2009.

KW - Corporate governance

KW - Innovation

KW - International strategy

KW - Managerial compensation

UR - https://www.scopus.com/pages/publications/70449578999

UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-70449578999&origin=recordpage

U2 - 10.1007/s11575-009-0002-y

DO - 10.1007/s11575-009-0002-y

M3 - RGC 21 - Publication in refereed journal

SN - 0938-8249

VL - 49

SP - 409

EP - 431

JO - Management International Review

JF - Management International Review

IS - 4

ER -

Technological competence and international diversification; The role of managerial incentives

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Research Keywords

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