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Recruiting strategic human capital from MNCs—Does hiring MNC managers enable exporting in domestic firms?

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  • Pedro de Faria
  • Torben Schubert
  • Wolfgang Sofka

Abstract

Exporting is a central growth strategy for most firms and managers with international experience are instrumental for export decisions. We suggest that such managers can be hired from Multinational Corporations (MNCs). We integrate theory from strategic human capital research into models explaining export decisions. We theorize that hiring managers from MNCs increases the odds of domestic firms to start exporting and this effect depends on the similarities between hiring firms and MNCs. We hypothesize that young firms will benefit comparatively less from hiring MNC managers. In contrast, firms with internationally diverse workforces and with high degrees of hierarchical specialization will benefit the most from hiring MNC managers. We test and support these hypotheses for 474,926 domestic firms in Sweden, which we observe between 2007 and 2015.

Suggested Citation

  • Pedro de Faria & Torben Schubert & Wolfgang Sofka, 2021. "Recruiting strategic human capital from MNCs—Does hiring MNC managers enable exporting in domestic firms?," PLOS ONE, Public Library of Science, vol. 16(10), pages 1-22, October.
    • Handle: RePEc:plo:pone00:0257922
    DOI: 10.1371/journal.pone.0257922
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    References listed on IDEAS

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    2. Igor Filatotchev & Xiaohui Liu & Trevor Buck & Mike Wright, 2009. "The export orientation and export performance of high-technology SMEs in emerging markets: The effects of knowledge transfer by returnee entrepreneurs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(6), pages 1005-1021, August.
    3. Bodlaj, Mateja & Kadic-Maglajlic, Selma & Vida, Irena, 2020. "Disentangling the impact of different innovation types, financial constraints and geographic diversification on SMEs' export growth," Journal of Business Research, Elsevier, vol. 108(C), pages 466-475.
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