The Impact of TMT International Exposure on Strategic Flexibility and the Moderating Role of TMT Compensation: A Study of U.S. Firms

This study proposes that the international exposure of the top executives (i.e., TMT) is an important antecedent to the strategic flexibility of firms. Additionally, I examine the moderating role of TMT compensation for the TMT international exposure strategic flexibility relationship. Based on a sample of 250 firms, I find TMT international exposure has a positive effect on the strategic flexibility of the firm. However, I did not find any evidence to support the moderating role of TMT compensation. I discuss implications and directions for future research.