Foreign director exit in the midst of deteriorating bilateral political relations

Amid global geopolitical realism pushing for a race of hegemonic rivalry nowadays, an outflow of global human talents is a pressing organizational concern. Our study draws attention to the underexamined phenomenon of the exit of foreign directors from their host countries during geopolitical tension...

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Main Authors: TIAN, Xiaocong, XU, Yuehua, YIU, Daphne W.
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Language:English
Published: Institutional Knowledge at Singapore Management University 2024
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/7515
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8514/viewcontent/Foreign_director_exit_pvoa_cc_by_nc.pdf
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spelling sg-smu-ink.lkcsb_research-85142024-08-22T03:10:21Z Foreign director exit in the midst of deteriorating bilateral political relations TIAN, Xiaocong XU, Yuehua YIU, Daphne W. Amid global geopolitical realism pushing for a race of hegemonic rivalry nowadays, an outflow of global human talents is a pressing organizational concern. Our study draws attention to the underexamined phenomenon of the exit of foreign directors from their host countries during geopolitical tensions. Theorizing from a sensemaking logic, we posit that the deterioration of bilateral political relations serves as an unexpected event that activates foreign directors’ schemas for dual identity conflict, propelling them to react behaviorally to such identity threats by exiting the board in the host country. In addition, we further posit that the sensemaking process is contingent on how the foreign director draws cues from the embedded social context, including organizational identification, socialization and homophily effect, and socioemotional climate. Our empirical analyses from a sample of 1,014 foreign directors in China from 1999 to 2018 provide strong and robust support for the hypotheses. This study instills important theoretical insights into the transcending impacts of international relations and geopolitics, international governance and foreign directors, and the situated cognitive process of sensemaking regarding the intertwining effects of cognitive schema and social contexts. 2024-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7515 info:doi/10.1177/01492063241265039 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8514/viewcontent/Foreign_director_exit_pvoa_cc_by_nc.pdf http://creativecommons.org/licenses/by/3.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University bilateral political relations dual identity conflict foreign directors geopolitical tensions sensemaking theory International Business Strategic Management Policy
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic bilateral political relations
dual identity conflict
foreign directors
geopolitical tensions
sensemaking theory
International Business
Strategic Management Policy
spellingShingle bilateral political relations
dual identity conflict
foreign directors
geopolitical tensions
sensemaking theory
International Business
Strategic Management Policy
TIAN, Xiaocong
XU, Yuehua
YIU, Daphne W.
Foreign director exit in the midst of deteriorating bilateral political relations
description Amid global geopolitical realism pushing for a race of hegemonic rivalry nowadays, an outflow of global human talents is a pressing organizational concern. Our study draws attention to the underexamined phenomenon of the exit of foreign directors from their host countries during geopolitical tensions. Theorizing from a sensemaking logic, we posit that the deterioration of bilateral political relations serves as an unexpected event that activates foreign directors’ schemas for dual identity conflict, propelling them to react behaviorally to such identity threats by exiting the board in the host country. In addition, we further posit that the sensemaking process is contingent on how the foreign director draws cues from the embedded social context, including organizational identification, socialization and homophily effect, and socioemotional climate. Our empirical analyses from a sample of 1,014 foreign directors in China from 1999 to 2018 provide strong and robust support for the hypotheses. This study instills important theoretical insights into the transcending impacts of international relations and geopolitics, international governance and foreign directors, and the situated cognitive process of sensemaking regarding the intertwining effects of cognitive schema and social contexts.
format text
author TIAN, Xiaocong
XU, Yuehua
YIU, Daphne W.
author_facet TIAN, Xiaocong
XU, Yuehua
YIU, Daphne W.
author_sort TIAN, Xiaocong
title Foreign director exit in the midst of deteriorating bilateral political relations
title_short Foreign director exit in the midst of deteriorating bilateral political relations
title_full Foreign director exit in the midst of deteriorating bilateral political relations
title_fullStr Foreign director exit in the midst of deteriorating bilateral political relations
title_full_unstemmed Foreign director exit in the midst of deteriorating bilateral political relations
title_sort foreign director exit in the midst of deteriorating bilateral political relations
publisher Institutional Knowledge at Singapore Management University
publishDate 2024
url https://ink.library.smu.edu.sg/lkcsb_research/7515
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8514/viewcontent/Foreign_director_exit_pvoa_cc_by_nc.pdf
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