A career spent working across borders could give business leaders a valuable advantage, helping them make smarter decisions, identify new opportunities and drive innovation. New research suggests that executives with international experience can play a key role in improving company performance, from boosting profitability and growth to strengthening stock market results.

The study, published in the Journal of Management, was conducted by Dr Fei Qin of the University of Bath School of Management, Professor Klaus Meyer of Ivey Business School and Professor Sabina Tasheva Nielsen of the University of Sydney. It examined how international experience among chief executives, founders, senior managers and board members 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 Dr Qin.

Researchers found that internationally experienced leaders often bring fresh perspectives, stronger professional networks and a deeper understanding of overseas markets. These advantages can benefit not only multinational corporations but also smaller, locally focused businesses seeking to become more entrepreneurial, creative and innovative.

Companies led by executives with international experience were more likely to invest in innovation and generate stronger returns from those investments. They also showed greater success in expanding overseas, entering new markets and pursuing international acquisitions. Such experience was additionally associated with better governance, risk management and stronger commitments to sustainability and corporate social responsibility.

According to Dr Qin, the advantages largely stem from three areas: human capital, which includes knowledge and skills; social capital, involving professional relationships and networks; and cognition and values, which influence how leaders assess risks, recognise opportunities and make decisions.

However, the researchers cautioned that international experience does not automatically guarantee business success. Its effectiveness depends on the relevance and diversity of a leader’s background, the dynamics within management teams and the broader organisational and industry environment.

The study also highlighted the importance of having internationally experienced executives across an entire leadership team rather than relying on one individual. Shared experiences can strengthen collaboration and confidence, while exposure to different countries and cultures can encourage leaders to question established assumptions and discover opportunities others might overlook.

For businesses recruiting senior executives, the findings suggest that having worked abroad should not be treated as a qualification in itself. Instead, employers should consider how long candidates spent overseas, the diversity of their experiences and how effectively their knowledge can be applied. Ultimately, the greatest advantage may come not from international experience alone, but from how organisations put that experience to work.

More information: Fei Qin et al, The Impact of Strategic Leaders’ International Experience on Organizations: An Integrative Review and Multilevel Framework, Journal of Management. DOI: 10.1177/01492063261465642

Journal information: Journal of Management Provided by University of Bath