International experience gives business leaders an edge, study finds

Business leaders with international experience play a significant role in shaping the success of their organizations and are often associated with stronger organizational performance, including higher growth, profitability and stock market performance, according to a new study published in the Journal of Management.

The study, by Dr. Fei Qin of the University of Bath School of Management and her co-researchers professor Klaus Meyer of the Ivey Business School and professor Sabina Tasheva Nielsen of the University of Sydney, examined how the international experience of chief executives, founders, senior management teams and boards influences business strategy and performance.

“International experience is much more than simply spending time abroad. It can be accrued through formative years abroad, education, work assignments or exposure to different cultures and business environments,” said Qin.

“These experiences can develop leaders’ understanding of foreign markets, broaden their professional networks and shape how they interpret opportunities and risks. More importantly, its value is not limited to multinational firms with global operations. It can also help smaller or local firms become more entrepreneurial, creative and innovative.”

The researchers found that companies led by executives with greater international experience often invested more in innovation and were better able to generate returns from those investments. They were also more likely to support and successfully implement international expansion strategies, including entering new markets, pursuing acquisitions abroad and expanding more rapidly overseas.

International experience was also linked to improved understanding of governance and risk management, and greater support for sustainability, environmental initiatives and corporate social responsibility activities.

“Essentially, international experience influences organizations in three main ways: human capital (skills and knowledge), social capital (networks and relationships), and cognition and values (how leaders think and make decisions)—but it is important to understand that the benefits of international experience may not always automatically translate to effective strategies and performance,” Qin said.

The study found outcomes depended on factors such as the type and relevance of the experience, the dynamics of the leadership teams, and the organizational and industry context in which leaders operate.

“While international experience often improves leadership decision-making, innovation and growth, the benefits are not guaranteed. Its value depends on context. Increasingly, what matters is the composition of the leadership team as a whole and how different forms of international experience are brought together. It matters whether that experience is concentrated in one individual or distributed across the leadership team,” Qin said.

“A degree of shared experience can be very valuable. It gives people common reference points and can strengthen confidence in collective decision-making. But leaders who have worked across different countries, regions or institutional environments may also identify different opportunities and challenge assumptions that might otherwise go unquestioned.”

“What this means in practice for senior-level recruitment and leadership development is that organizations should move beyond simply asking whether a leader has international experience and instead consider the nature of that experience and its length, breadth, variety and the degree of cultural and institutional distance involved, as well as the organizational conditions and mechanisms that enable it to be effectively integrated and harnessed to create value,” Qin said.

Who’s behind this story?

Gaby Clark

MA in English, copy editor since 2021 with experience in higher education and health content. Dedicated to trustworthy science news.

Full profile →

Andrew Zinin

Master’s in physics with research experience. Long-time science news enthusiast. Plays key role in Science X’s editorial success.

Full profile →