Antecedents and performance effect of managerial misperception of institutional differences

Clarissa E. Weber*, Dominik Chahabadi, Indre Maurer

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

This study examines managerial misperception of institutional differences between countries—the deviation of managers’ perceived differences from actual ones. Drawing on a bounded-rationality perspective and an information-based view, we theorize about the effect and contextual antecedents of managerial misperception of country differences. Examining data from 186 managerial assessments confirms a negative relationship between managerial misperception and firms’ host-country performance, providing evidence for the relevance of this construct for international-management research and practice. Furthermore, in line with our theory, we find support for a direct impact of variables determining information-access opportunity and information-processing complexity as contextual antecedents of managerial misperception.

Original languageEnglish
Article number101018
Pages (from-to)1-14
Number of pages14
JournalJournal of World Business
Volume55
Issue number1
DOIs
Publication statusPublished - Jan 2020

Keywords

  • Bounded rationality
  • Country differences
  • Information-based view
  • Institutional differences
  • Managerial misperception

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