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Export Experience of Managers and the Internationalization of Firms

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  • Davide Sala
  • Erdal Yalcin

Abstract

As the firm gravitates to the core analysis of international trade models, the possibilities to learn from the theory of the multinational enterprise developed in international business studies increase. The managerial resources and capabilities that in this theory underlay export initiation have largely been neglected in the empirical studies of international trade. Probably not because they are unimportant, but rather because of the challenge to identify and measure them. We exploit Danish employer-employee matched data to overcome this barrier and analyze the impact of managers’ international experience together with other managerial characteristics on the likelihood that the firm starts exporting. We find that productivity and fixed costs associated to exporting are not the sole determinants of the selection of firms into international markets, but “managerial inputs” are as important. Our data allows us to identify managers’ export experience based on the CEOs’ historical career as documented in official registry statistics. This puts our study apart from earlier survey based studies which rely on self-assessments.

Suggested Citation

  • Davide Sala & Erdal Yalcin, 2012. "Export Experience of Managers and the Internationalization of Firms," ifo Working Paper Series 139, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_139
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    Cited by:

    1. Jaan Masso & Kärt Rõigas & Priit Vahter, 2015. "Foreign market experience, learning by hiring and firm export performance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(4), pages 659-686, November.
    2. Salim Chahine & Samer Saade & Marc Goergen, 2019. "Foreign Business Activities, Foreignness of the VC Syndicate, and IPO Value," Entrepreneurship Theory and Practice, , vol. 43(5), pages 947-973, September.
    3. Parrotta, Pierpaolo & Pozzoli, Dario & Sala, Davide, 2016. "Ethnic diversity and firms' export behavior," European Economic Review, Elsevier, vol. 89(C), pages 248-263.
    4. Hans Lööf & Ingrid Viklund‐Ros, 2020. "Board of directors and export spillovers: What is the impact on extensive margins of trade?," The World Economy, Wiley Blackwell, vol. 43(5), pages 1188-1215, May.
    5. Andreas Hatzigeorgiou & Magnus Lodefalk, 2019. "Migration and servicification: Do immigrant employees spur firm exports of services?," The World Economy, Wiley Blackwell, vol. 42(11), pages 3368-3401, November.
    6. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2015. "The Role of Foreign Networks for Firm Export of Services," Working Papers 2015:6, Örebro University, School of Business.
    7. Liis Roosaar & Urmas Varblane & Jaan Masso, 2020. "Productivity Gains From Labour Churning In Economic Crisis: Do Foreign Firms Gain More?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 125, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    8. Magnus Lodefalk, 2016. "Temporary expats for exports: micro-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 733-772, November.
    9. Bisztray, Márta & Koren, Miklós & Szeidl, Adam, 2018. "Learning to import from your peers," Journal of International Economics, Elsevier, vol. 115(C), pages 242-258.
    10. Claudio Labanca & Danielken Molina & Marc-Andreas Muendler, 2013. "Preparing to Export," NBER Working Papers 18962, National Bureau of Economic Research, Inc.
    11. Jaan Masso & Priit Vahter, 2016. "Knowledge Transfer From Multinationals Through Labour Mobility: Learning From Export Experience," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 99, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    12. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    13. Junghyun Yoon & Dae-su Kim, 2016. "Empirical Relationships among Technological Characteristics, Global Orientation, and Internationalisation of South Korean New Ventures," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-13, December.
    14. Syeda Tamkeen Fatima, 2017. "Globalization and technology adoption: evidence from emerging economies," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(6), pages 724-758, August.
    15. Jaan Masso & Kärt Rõigas & Priit Vahter, 2014. "Foreign Market Experience, Learning by Hiring and Firm Export," Discussion Papers 26, Central European Labour Studies Institute (CELSI).

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    More about this item

    Keywords

    Export status; managerial promotions; international experience; selfselection;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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