Purpose This paper examines the relationship between chief executive officer (CEO) international experience (IE) and firm performance. The authors also examine the symmetry of this relationship, whereby home and host countries would be interchangeable without any significant change in the impact of each cultural dimension on firm performance. Design/methodology/approach For a sample of CEOs from Fortune's list of Global 500 companies, firm performance was measured as average net margin for the first four years of CEO tenure. IE was the difference between home country culture and that where CEO experience was gained, based on the GLOBE cultural dimensions. Regression then tested the IE/firm performance relationship. For symmetry, distance direction was coded as either positive or negative, depending on whether home country score on a given dimension was higher or lower than that of the host. Moderator regression then tested for whether distance direction impacted the relationship between IE and firm performance. Findings Results show that overall distance between home and host cultures in aggregate does not have a significant effect on firm performance. However, for specific dimensions, greater distances between the CEO's countries of experience and that of the parent company on in-group collectiveness and performance orientation are associated with higher firm performance, and greater distances on power distance and assertiveness are associated with lower performance. The authors further find asymmetric patterns in the IE–performance relationship, attributable primarily to the fact that, when scores on performance orientation are greater for the home than host country, organizational performance is significantly enhanced. Originality/value This study's hypotheses are grounded in theory, combining the human capital perspective with cultural paradox theory. In addition, the authors offer a unique approach for measuring the dimensional distance of culture.

STRUCTURED ABSTRACT Manuscript Type: Conceptual/Theoretical Research Question/Issue: Why do CEOs overstay and, in some cases, long overstay their welcomes? Social Network Theory may offer some explanation for delays in dismissing CEOs that, in the eyes of shareholders, should have been long gone. Social Network Theory also suggests that delaying the dismissal of a CEO will in turn delay firm performance recovery. Social Network Theory is reviewed in the context of board monitoring and its effects on CEO dismissal and subsequent recovery. It is ultimately suggested that certain board attributes will have an indirect effect on recovery time, as mediated by CEO dismissal time. A model and propositions are laid out and potential next steps are outlined for pursuing this line of inquiry. Research Insights: Based on the literature review, it seems likely that board composition will have an indirect effect on how long it takes for organizations to recover from poor performance, after replacing an underperforming CEO. Theoretical Implications: This paper makes important contributions to the corporate governance literature. First and foremost, it extends the research agenda on board composition, CEO turnover, and performance, to include the element of time. More specifically, it suggests that certain characteristics of corporate boards are more likely to inhibit the types of governance necessary to remove underperforming CEOs, and this in turn will impact the time it takes for organizational performance to recover. The paper also deepens the application of Social Network Theory to the study of corporate governance, addressing several elements of social networks that are found in non-independent boards and with “overboarded” directors. Practitioner Implications: Risks of poor performance due to inadequate governance are far reaching, and shareholders and D&O (Directors and Officers) liability insurers are particularly vulnerable. Even with new management in place, shareholders might lose faith in the board if important strategic actions were delayed and especially if they negatively impact their investments. The anticipated effects of recovery can also discourage future investment in the company. Vigilant boards, composed of independent directors with optimal bandwidth, would be more likely than dense and embedded boards to replace the CEO when it is warranted. It would therefore behoove shareholders to participate in the election of directors, rather than turning that privilege over to the very board that took too long to replace the CEO due to its strong network structure.

A review of the literature on corporate governance serves to demonstrate the applicability of many governance solutions to the university setting. Based on a review of university scandals, most of which are recent but some of which took place decades ago, it is possible to categorize them as follows: sex scandals, drugs, cheating, hazing, admissions and diplomas, on-the-job consumption, athletics, and murder. Several examples are provided in the paper, along with their impact on various stakeholders. The paper then discusses a variety of solutions designed to either preempt the activities potentially leading to scandal, to deter them or to punish perpetrators. Some of these involve structural changes, institutional policies and procedures, fines, terminations, and sanctions. The paper emphasizes the proactive safeguards which govern and monitor to make sure that universities do not suffer on the back end and that their reputations do not suffer into the future.

There were differences among White, African-American, and Hispanic consumers on: recreational; impulsive; price conscious; and confused by overchoice consuming. This research suggests that due to the changing demographic composition of the U.S., marketing strategists need to continuously examine possible racioethnic differences in the decision making styles of their consumers.

Purpose - The purpose of this paper is to examine the relationship between cultural distance and cross-cultural adjustment. The authors address four hypotheses regarding this relationship: the Cultural Distance Hypothesis; the Cultural Distance Paradox; the Null Hypothesis; and the Asymmetry Hypothesis, in an effort to reconcile the disparities found in the literature. Specifically, portions of the extant literature support a positive relationship, while others support the opposite. There is also some evidence that this relationship may vary depending on the direction of expatriate transfer. Finally, some of the research has failed to support any significant relationship between cultural distance and adjustment.Design/methodology/approach - Survey data were collected from 125 expatriates (117 expatriates and eight repatriates), representing 36 nationalities and on assignment in 32 different countries. Multiple regression analyses were used to regress cultural distance on both general and work-related adjustment. Cultural distance was first operationalized as a composite of the scores on Hofstede's cultural dimensions. Subsequently, distances for each of the dimensions were entered into the regression models.Findings - The authors concur with the Cultural Distance Paradox that greater differences in individualism between home and host cultures facilitates work adjustment. Findings also support the Asymmetry Hypothesis that travel from individualistic societies to more collectivist ones results in greater adjustment than does travel in the opposite direction.Practical implications - Based on the Cultural Distance Paradox, firms may be well-advised to direct their expatriate training efforts toward those assignments where the home and host cultures are presumably similar, as there may be a tendency to take adjustment for granted and therefore forgo cross-cultural training. Similar efforts should be made to ease transfers to locations where the culture is more individualistic than that of the parent country.Originality/value - Rather than fixate on one set of findings from the literature, this study considers all four of the possible relationships between cultural distance and adjustment, as found or suggested in previous research. This comprehensive approach should advance our understanding of cultural distance as a complex construct, with a role that cannot be consistently defined across all situations. This represents a departure from the need to assign static roles to variables that may be dynamic in nature.

This paper examines the discord surrounding how expatriate success, or effectiveness, is defined. We review the many ways that success has been conceptualized and then seek to reconcile these differences by presenting a multidimensional measure of success, based on data collected from 118 expatriate respondents worldwide. A series of factor analyses, along with reliability and item analyses yielded nine measurement scales which included cultural adjustment, work-related adjustment, career development, HQ-subsidiary coordination, assignment completion, professional/skill development, shaping and controlling the subsidiary, satisfaction and overall assignment effectiveness. The process by which these scales were developed is described in the paper and all items and scale reliabilities are presented.

PurposeThis paper aims to assess the relationship between expatriate personality and effectiveness on overseas assignments.Design/methodology/approachSurvey data were collected from 118 expatriates who were currently on assignments overseas or had been on an assignment in the past.FindingsResults of multiple regression analysis show expatriate personality traits to be significant predictors of two of the effectiveness measured used. Extraversion, emotional stability, and openness have a significant, positive impact on expatriate adjustment, and agreeableness is significant and positively associate with expatriate job performance.Practical implicationsOrganizations may be well‐served to consider expatriate personality as an important criterion for selection for overseas assignments, as successful assignments reflect on the organization in a number of ways and thus contribute to the company's global competitiveness.Originality/valueExtant research on the connection between expatriate personality and effectiveness has been limited, relies on expatriate or supervisor perceptions of which traits they believe are important to success, and has been inconsistent in measuring the effectiveness construct. This paper directly assesses personality and employs multiple dimensions of effectiveness, thus contributing to the understanding of this relationship.

CASE DESCRIPTION The primary subject matter of this case is corporate governance, and The Walt Disney Company is used as an example of the strengths and weaknesses that can be found in governance systems. Secondary issues examined include CEO role duality, board independence, entrenchment, and succession planning. The case has a difficulty level of four and is most appropriate for undergraduate or graduate-level business education, either in strategic management or leadership. It is designed to be taught in 1 ½ class hours and is expected to require 1-2 hours of outside preparation. Specifically, students should first become familiar with the federally-legislated Sarbanes-Oxley Act of 2002 and would be well-served to read the case titled Michael Eisner and his Reign at Disney, which can be found in this issue. The case here seeks to demonstrate that what appears to be strong governance may in fact be a facade, by elucidating the subtle components of corporate governance that can slip under the radar but which are crucial if governance is to be effective. When is meeting the letter of the law enough, and how is that determined by shareholders? CASE SYNOPSIS This case discusses the corporate governance practices at The Walt Disney Company. It discusses the company's governance issues and mechanisms prior to the breakout of scandalous activity in corporate America, which began with the crisis at Enron in 2001. We discuss the years that immediately followed, with particular attention to the changes in the governance landscape - that is, the new expectations imposed on US businesses, either voluntarily or by federal legislation or stock exchange regulation. Among the topics discussed are board independence and board size, fees for services, succession planning, diversity, entrenchment, and CEO duality. We then address the steps that The Walt Disney Company has taken towards complying with these new rules, not only to highlight how far the company has come but also to show how much more needs to be done in order to restore investor confidence and corporate reputation. In a separate case in this issue, we discuss the conflicts that arose among the company's CEO and two of its board members, which may have contributed significantly to negative perceptions regarding Disney's governance practices. INTRODUCTION Accordingly, the Board of Directors of the Company recommends that you vote AGAINST this proposal, and your proxy will be so voted if the proposal is presented unless you specify otherwise www.disney.com). So went the board recommendation regarding each of the more than 10 shareholders' proposals from 1999 to 2003. This, together with a downward trend in the company's stock, may find shareholders taking pause as to whether Disney's board of directors is truly aligned with the company's owners and whether the board is fulfilling its role in the governance process. Few would refute the value Disney provides to consumers. The company creates magic and commands a premium price for its products and services across its varied lines of businesses. But, as mentioned above, not all stakeholders have cause to celebrate. Revenue for Disney increased at a steady rate from 1994-2004, yet profits dwindled. As a shareholder, consider this - $10,000 invested in 1998 had a value of $4,878 five years later, representing an average annual loss of 15.44%. If such an investor held 200 shares, he would have had little clout with the board of directors in initiating any changes. With the number of shares outstanding significantly diffused among investors, there were only rare instances of concentrated ownership. However, with institutional ownership on the rise, at 67 percent of all outstanding shares in 2003, large-scale investors had increasingly more voting power. Shareholder litigation escalated, and corporate governance at The Walt Disney Company has been vulnerable to media scrutiny. In 1996, the company was ranked Number 14 on Business Week's infamous list of Worst Boards, and, in 1997, the same year in which Eisner had actually been booed by investors at a shareholders' meeting, Disney had the dubious honor of being named as the Number One worst board! …

CASE DESCRIPTION Topics addressed in this case include management conflict, corporate governance, shareholder value, and CEO succession. It may be used in an undergraduate, upper-level classroom, and is particularly appropriate for a capstone course in strategic management. It will also work well in any number of graduate business courses, including general management, leadership, and organizational behavior. Prerequisites for this case include some understanding of prevailing corporate governance topics, as well as familiarity with The Walt Disney Company's diversified portfolio of businesses. As a result, no outside readings should be necessary to understand the case, but some outside research will be necessary in order to address the assigned questions. The case should prove to be an easy read, taking no more than 20 to 30 minutes and then allowing 1 ½ to 2 hours to address the questions that follow. CASE SYNOPSIS This is a story of the triumphs and challenges of one of the most notable executives in corporate American history, Disney Chairman and CEO Michael Eisner. The purpose of this case is to highlight the impact of corporate governance from a shareholder perspective. In particular, two problems are addressed - (i) Disney's reputation for weak governance, whether justified or not, and (ii) dissention among the top ranks of the organization. While it is difficult to determine which came first, the case shows how each of these issues perpetuates the other, and that removing the source may be the only way to recover. As CEO, Michael Eisner was blamed for both, and thus the board was divided into two camps. There were those who supported Eisner and his actions over the years and those who did not. The question remained as to which side would prevail. The case begins with a description of the situation facing Eisner at the close of 2003. Two long-standing Disney board members had called for his resignation from both positions, in letters rife with criticism of Eisner and his management team. Eisner's many options are presented and revisited later in the case. In order to help the reader analyze Eisner's situation, the case provides a brief history of The Walt Disney Company, as well as biographical descriptions of the CEO and the two dissenting board members, Roy Disney and Stanley Gold. Coverage includes company milestones under Eisner's leadership, and comparisons are made between the company 's financial performance and Eisner 's highly criticized compensation package. We then describe the conflict that arose between the parties and offer some discussion of the governance practices that come under attack in the letters. As there are usually two sides to every story, voices in favor of Eisner's management are also heard. The case then discusses what transpired as shareholders met and voted on a key governance issue with clear implications for the future - both for Eisner and for the company and its shareholders. INSTRUCTORS' NOTES Assigned Questions 1. Who served on Disney's board of directors in 2003? Describe the characteristics and backgrounds of each board member. The following table lists those directors of the Walt Disney Corporation who were up for reelection in 2003, along with their ages, tenure on the board, whether they were considered to be insiders to the company, and how many directorships they held in 2003 in addition to Disney. While only 5 of the 13 directors were considered insiders, as defined by their employment, past or present, with the Walt Disney Company or any of its affiliates or acquired companies, others may have had relationships with the company that extended beyond their directorships. These directors, therefore, while considered outsiders, may not meet the standards of independence as set forth in the company's guidelines as well as by the new governance legislation. Examples include Senior George Mitchell's architectural services rendered to the company, as well as Louise Bryson's (wife of director John Bryson) employment at Lifetime Entertainment Television, in which Disney has a 50 percent stake. …

PurposeThe purpose of this paper is to examine the demise of Enron, one of the most curious aspects of which was that on the surface it appeared to be thriving, giving no one any cause to question the company's governance structures.Design/methodology/approachThe paper provides a detailed analysis of the composition of Enron's board of directors, demonstrating how directly observable traits are not the sole determinants of effective corporate governance.FindingsThe paper finds that collectively, the board's qualifications are less overt, and even more elusive are the ethics and morals that drive the governance process.Originality/valueThis case illustrates how ethics and morals are necessary, but that none is sufficient, to deter poor governance, and also underscores the far‐reaching impact of Enron's moral deficiencies.

The discovery of classic parental imprinting came, at least in part, from the analysis of transgene expression in mice [1]. It was noticed that some transgenes were only expressed following paternal transmission [2-4] and that others sometimes showed differential patterns of methylation depending on the parent of origin [5, 6]. Here, we present evidence of a novel and more subtle form of parental imprinting by taking advantage of the highly sensitive detection of murine transgene expression afforded by flow cytometry. We have produced nine lines of transgenic mice carrying a GFP reporter linked to the human alpha-globin promoter and enhancer elements, which direct expression to erythroid cells. A high proportion of transgenic lines, four of the nine, display significantly lower levels of expression following maternal transmission. Both the percentage of expressing cells and the mean fluorescence in expressing cells are between 10% and 30% lower following maternal transmission. These effects are reversible upon passage through the opposite germline. This finding raises the possibility that differences in the epigenetic state of the maternal and paternal chromosomes in adult somatic cells are more widespread than was previously thought.

This study is based on the premise that, as organizations gain experience in the international marketplace, the determinants of job satisfaction for expatriate managers will vary. It is hypothesized that significant learning, manifested in firm international experience, will moderate the effects of work/life experience, mentorship, training and environmental benevolence. Findings partially support this theoretical argument and confirm the expectation that the impact of mentoring on satisfaction will lessen over the course of firm internationalization. Further, the impact of training on expatriate satisfaction was more pronounced for highly internationalized firms than for those with limited exposure abroad. Results of the empirical tests are provided, and their implications are discussed.

This research project explores the relationship between national culture and trust, incorporating models from both the trust and the cross-cultural management literatures. Accepting that trust is a function of the trustor ' propensity to trust others, dimensions of national culture were expected to contribute to this propensity The study considered several dimensions of culture as they relate to trust. In addition, the study examined whether propensity to trust others is reflected in individual trust in suppliers from certain referent countries and in preferences to work alongside citizens from those countries. Introduction Trust facilitates constructive dialogue and cooperative problem-solving (Parkhe, 1991), and thus it may be seen as the major factor in the formation of interfirm partnerships (Madhok, 1995), especially those that endure (Morgan & Hunt, 1994; Williamson, 1985). The topic of trust has gained considerable attention in organizational studies, particularly in management (Lane & Bachman, 1996) and marketing (Moorman, Zaltman & Dashpande, 1992). Concurrently, the body of cross-cultural research has been growing as a result of the globalization of markets and hence of businesses (Hofstede, 1980; Ronen & Shenkar, 1985). However, only minimal consideration has been given to the ways in which national culture impacts trust in business relationships, whether they be in diverse, intraorganizational work teams or in joint ventures or other forms of strategic alliances (Doney, Cannon & Mullen, 1998). This may be due, in part, to the difficulty in collecting reliable information from overseas sources on attitudes and behaviors, as well as to the uncertain applicability of American theories abroad. In the current study, we explore the relationship between national culture and trust with the expectation that certain characteristics of an individual's national culture will be associated with a predisposition to trust or to distrust others. In addition, the study examines whether this propensity to trust others is reflected in individual trust in suppliers from certain referent countries and preferences to work alongside citizens from those countries. Trust Across Cultures Most perspectives on trust recognize that risk is required for trust to influence choice and behavior (Lewis & Weigert, 1985; Schlenker, Helm & Tedeschi, 1973). And, in trusting situations, the sources of risk are generally related to vulnerability and or uncertainty about an outcome, both of which may be exacerbated when transacting on a cross-cultural basis. In a key study on cross-national trust, Doney, Cannon, and Mullen (1998) assert that trust is developed through any of five processes, and they believe that which process is used depends on the trustor's societal norms and values (i.e. his or her national culture). The five processes included in their model are calculative, prediction, intentionality, capability, and transference. And, they propose that the various dimensions of a national culture (such as individualism, uncertainty avoidance, etc.) will dictate which process(es) is used to develop trust. This, then, can be seen as part of an individual's propensity to trust. However, this model does not consider any attributes of the trustee, many of which have been identified as key contributors to whether one party trusts another (Mayer, Davis & Schoorman, 1995). The bulk of research, though mainly domestic, that does consider trustee characteristics converges on the trustee's abilities (Good, 1988; Sitkin & Roth, 1993), integrity (Ring & Van de Ven, 1992; Butler, 1991), and benevolence (Butler, 1991; Larzelere & Huston; 1980), as perceived by the trustor. Ability encompasses a group of skills that are domainspecific (Zand, 1972). In other words, an individual may be trusted to perform a particular task for which he/she has the requisite skills, but may or may not be trusted beyond that task. …

This study explores the role of expatriate satisfaction in organizational performance. It also posits that international transfer of knowledge and corporate learning are determinants in the overall satisfaction of expatriate managers. Moreover, as organizations gain international experience, their expatriate managers contribute to the global learning of the firm. This corporate learning provides the tools (e.g. foreign market experience and know‐how) for future expatriate managers and increases the likelihood of positive overseas experiences. Results from 132 expatriates of Fortune 500 firms indicate that satisfaction is significantly related to the performance of the organization as a whole and, further, that this relationship will vary depending on the international orientation of the organization.

While group intellectual capital, manifested in the ability to transfer core competencies from one experience to the next, is critical for sustaining competitive advantage, today's organization faces the difficulty of measuring and managing these intangible assets. Here we examine the unique role of expatriate managers in enhancing group intellectual capital by facilitating the transfer of knowledge across national borders. Thus, while expatriates (or home-country managers sent on overseas assignments) represent costly and sometimes unsuccessful endeavors, expatriation remains a viable staffing strategy among multinational corporations (MNCs) for several reasons. Among these are the potential to (1) facilitate the communication process between the parent location and its subsidiaries, as well as across subsidiaries, (2) aid in establishing country linkages, and (3) increase the firm's understanding of international operations. As such, the practice of employing expatriates may be a strategic move on the part of an MNC to increase the international experience and knowledge base of present and future managers (Boyacigiller, 1991). Thus, expatriation is a tool by which organizations can gather and maintain a resident base of knowledge about the complexities of international operations. The expatriation literature frequently cites the need to transfer resources abroad as a primary reason for expatriating home-country nationals to foreign affiliates (Dowling et al., 1994). However, the process of expatriation remains void of any deeper theoretical explanation or empirical support. The number of home-country expatriates in subsidiaries is often taken as an index of internationalization (Kobrin, 1988). It is suggested here that the relationship between expatriation and internationalization is grounded in theory, and that the nature of this relationship will change as internationalization takes place. This article is concerned with the expatriation strategies of firms at different levels of organizational experience abroad, both in specific national markets and in the international marketplace as a whole. It was expected that, at both levels of analysis, firms gradually increase the use of expatriates but at some point begin to pull back on their use in favor of local nationals. This expectation was based on the learning process that firms undergo about operating within certain markets (i.e., national laws, politics, cultures), as well as the applicability in one market of lessons learned in others. The flows of two types of information, referred to as market-specific and general knowledge, are illustrated in Figure I. The cycles represented by Paths 1 and 2 are market-specific. That is, Path 1 represents the flow of organizational knowledge (i.e., corporate philosophy, policies, procedures) to the subsidiary through the expatriate manager. Path 2 represents the flow of market-specific knowledge, as picke d up by the expatriate, and shared with the parent company. Knowledge flows back to the parent company occur during expatriate assignments as well as upon repatriation. With each successive expatriation into the country, the company and the expatriate manager are more informed about how to operate there. As such, Path 1 increasingly reflects more market-specific knowledge brought back to the subsidiary location. As this cycle occurs in more than one national market, firms are able to capture synergies (Path 4) that result from accumulated market-specific knowledge (Path 3). As this overall cycle repeats itself, Path 1 increasingly reflects these synergies and may enable the firm to streamline its expatriate population. The remainder of this article is divided into four sections. The first section provides the theoretical background on how intellectual capital is developed through the continuous transfer of core competencies, a process known as organizational learning. It also establishes the applicability of organizational learning in the international context and describes the role of expatriates in facilitating the learning process, followed by the hypotheses to be tested. …

Business students in two universities were queried regarding their willingness to accept international postings. In contrast to Adler's (1984a, 1986) findings, gender was a significant predictor when specific referent countries were identified. Country characteristics considered here included cultural distance (or the difference between the cultures of the respondent's home country and that of the referent location) and the levels of development and political risk in the referent country. Differences among countries on indices of cultural distance and human development explained substantial variance among males and females in their willingness to accept international assignments. Political risk, however, was not significant in explaining these gender differences.