Top management teams and investment decisions: A study of executive experience and cultural diversity

Abstract

We employ an empirical study of mining companies in Sub Saharan Africa (SSA) using the upper echelons theory (UET) to explore how the top management team (TMT) perceptions and experiences influence investment decisions. UET is used as it is consistent with the Uppsala internationalization model, which best fits mining companies. We assess past international experiences, nationality diversity, age, and education levels of the TMT in order to determine if these demographics impact the decision to invest in SSA countries. This study also assists in closing the gaps in the literature on how executive experiences impact the investment decision process in an international setting as well as how the cultural composition of the TMT influences corporate decisions.