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The post-acquisition period is often associated with organizational disruptions and employee-related challenges, which result in the departure of valued employees. While a growing body of research has examined the above challenges from the perspective of target firms, we know less about how acquirers consider the risk of losing their own employees when deciding on potential acquisitions. We argue that acquirer ex-ante expectations of employee departures in the aftermath of acquisitions reduce the attractiveness of acquisitions as a technology sourcing strategy. We further argue that this negative effect is weaker for acquirers that have a stronger product pipeline or stronger downstream commercialization capabilities. Leveraging a natural experiment in the context of technology acquisitions in the U.S. biopharmaceutical industry, we find causal evidence supporting the above propositions.
Hiring for Knowledge or Skills: How Do Firms Exploit the Human Capital of Scientific Hires?
University of Massachusetts, Amherst
Academic scientists develop deep topic knowledge in highly specialized niches; they also develop extensive scientific skills to carry out advanced research in their fields. Past research focuses on the generalist-specialist distinction in topic knowledge when seeking to understand how firms benefit from hiring scientists from academia. I distinguish between two dimensions of scientific human capital: topic knowledge and research skills. I show that academic scientists transitioning to industry employment subsequently have more conceptually diverse research output. This is consistent with industry placing a higher value on the scientific research skills of academic hires in their human capital strategies. It contrasts with a view in which firms hire experienced scientists with the primary intention of exploiting their highly specialized, but narrow, topic knowledge for commercial purposes.
High-skilled Migration & Firm’s Exploration of Novel Technology Fields
Copenhagen Business School Paul-Emmanuel Anckaert,
SKEMA Business School
This study examines how the hiring of high-skilled migrant R&D workers impacts the development of technologies that are novel to the hiring firm. More specifically, we analyze how the hiring of foreign R&D workers is related to the subsequent development of technologies situated in previously unexplored technological fields. Studying a sample of 376 unique R&D active Danish firms over the period from 2001 to 2013, our results indicate that hiring foreign R&D workers positively affects the extent to which firms develop new-to-the-firm technologies. This effect is most salient hiring these foreign R&D workers leads to a strong increase in the diversity of geographical origins represented within the hiring firm’s R&D workforce. Remarkably, no significant effect with respect to hiring native R&D workers is found.
Does Knowledge Transfer Influence Host Country Local’s Turnover?: In the Context of a Korean MNC
Jin Suk Park,
Hitotsubashi University Jae Yoon Chang,
Sogang University Taehun Lee,
The important role of host country nationals (HCN) in local firms of multinational corporations has been highlighted by the aspect of knowledge transfer from headquarters under the assumption that a successfully transferred knowledge will improve organizational competitiveness. Due to the HCNs' turnover preventing the positive outcomes from the knowledge transfer, it's important to understand the mechanism of knowledge transfer leading to the turnover. In this proposal, we suggest that (1) the amount of absorptive capacity in a subsidiary is likely to reduce the turnover decision of HCNs, (2) the amount of knowledge received from HQ is likely to increase the turnover decision of HCNs, and (3) the relative knowledge input to absorptive capacity in the organizational level is likely to increase the turnover decision.