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Managers as knowledge carriers – Explaining firms’ internationalization success with manager mobility

Author

Listed:
  • Philipp Meinen

    (Aarhus University [Aarhus])

  • Pierpaolo Parrotta

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Davide Sala

    (Aarhus University [Aarhus])

  • Erdal Yalcin

    (University of Applied Sciences Konstanz CESifo IfW-Kiel and TGF)

Abstract
While managerial mobility is ubiquitously seen as an integral part of the success in firms' internationalization, discerning its empirical merits has been impaired by the paucity of quasi-experimental evidence, or adequate instrumental variables. To overcome these objective limitations, this paper proposes a novel identification strategy, which uses a control function based on on-the-job search theory to correct estimates for the presence of self-selected mobility flows. Our analysis confirms the finding that managers' specific market experience matters for firms' internationalization, especially when it derives from longer tenures at the former jobs. Regarding the attributes of managerial knowledge, our results reveal that on-the-job earned experience is at least as effective for firms' internationalization as in born knowledge (i.e. origins) and that managers' personal network of customers is an important asset in managers' fund of expertise for the expansion into new markets.

Suggested Citation

  • Philipp Meinen & Pierpaolo Parrotta & Davide Sala & Erdal Yalcin, 2022. "Managers as knowledge carriers – Explaining firms’ internationalization success with manager mobility," Post-Print hal-03974750, HAL.
    • Handle: RePEc:hal:journl:hal-03974750
    DOI: 10.1016/j.jinteco.2022.103633
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    2. Miklós Koren & Álmos Telegdy, 2024. "Expatriate Managers: Effects on Firm Performance," CESifo Working Paper Series 11164, CESifo.
    3. Meinen, Philipp & Raff, Horst, 2018. "International trade and retail market performance and structure: Theory and empirical evidence," Journal of International Economics, Elsevier, vol. 115(C), pages 99-114.
    4. Dimitrios Exadactylos & Massimo Riccaboni & Armando Rungi, 2019. "Talents from Abroad. Foreign Managers and Productivity in the United Kingdom," Working Papers 01/2019, IMT School for Advanced Studies Lucca, revised Dec 2019.
    5. Piotr Tarka & Elżbieta Jędrych, 2023. "Toward an exploratory framework of determinants of marketing research effectiveness in business organizations," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(3), pages 503-522, September.
    6. Carsten Eckel & Ina Charlotte Jäkel & Luca Macedoni & Raymond Riezman & Raymond G. Riezman, 2024. "Testing the Waters: How Firms Enter New Markets," CESifo Working Paper Series 11340, CESifo.
    7. Lark, Olga & Videnord, Josefin, 2023. "Do Exporters Import Gender Inequality?," Working Papers 2023:6, Lund University, Department of Economics.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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