Effects of hiring former employees of multinationals in the absorptive capacity of local firms

Juan Carlos Leiva; Juan Antonio Rodríguez Álvarez; Ricardo Monge González

doi:10.1016/j.cya.2016.06.009

Effects of hiring former employees of multinationals in the absorptive capacity of local firms

Juan Carlos Leiva, Juan Antonio Rodríguez Álvarez, Ricardo Monge González

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

Attracting Foreign Direct Investment seeks, among other goals, increase productivity of local firms through knowledge spillovers. Nevertheless the empirical evidence is contradictory. One influential factor is the absorptive capacity of local firms. This article analyzes the effect of the presence of ex-employees of multinational companies, as employees of local firms in the absorption capacity of these firms. The study was conducted in Costa Rica, a country recognized for its successful strategy in this area. The data come from a survey of 1,167 companies conducted by the Costa Rican Observatory of Small and Mediums Enterprises in 2011. It was found that hiring former employees of multinational companies by local firms has a positive effect on the rate of absorption capacity. In short, this engagement of former employees of multinationals increases by nine percentage points the rate of absorption capacity, with differences for sectors and firms sizes.

Translated title of the contribution	Efectos de la contratación de exempleados de multinacionales en la capacidad de absorción en empresas locales
Original language	English
Pages (from-to)	657-669
Number of pages	13
Journal	Contaduria y Administracion
Volume	62
Issue number	2
DOIs	https://doi.org/10.1016/j.cya.2016.06.009 https://doi.org/10.1016/j.cya.2016.06.011
State	Published - Apr 2017

Keywords

Absorption capacity
Costa Rica
Knowledge spillovers
Multinationals companies
SME

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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title = "Effects of hiring former employees of multinationals in the absorptive capacity of local firms",

abstract = "Attracting Foreign Direct Investment seeks, among other goals, increase productivity of local firms through knowledge spillovers. Nevertheless the empirical evidence is contradictory. One influential factor is the absorptive capacity of local firms. This article analyzes the effect of the presence of ex-employees of multinational companies, as employees of local firms in the absorption capacity of these firms. The study was conducted in Costa Rica, a country recognized for its successful strategy in this area. The data come from a survey of 1,167 companies conducted by the Costa Rican Observatory of Small and Mediums Enterprises in 2011. It was found that hiring former employees of multinational companies by local firms has a positive effect on the rate of absorption capacity. In short, this engagement of former employees of multinationals increases by nine percentage points the rate of absorption capacity, with differences for sectors and firms sizes.",

keywords = "Absorption capacity, Costa Rica, Knowledge spillovers, Multinationals companies, SME",

author = "Leiva, {Juan Carlos} and {Rodr{\'i}guez {\'A}lvarez}, {Juan Antonio} and {Monge Gonz{\'a}lez}, Ricardo",

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doi = "10.1016/j.cya.2016.06.009",

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AU - Leiva, Juan Carlos

AU - Rodríguez Álvarez, Juan Antonio

AU - Monge González, Ricardo

PY - 2017/4

Y1 - 2017/4

N2 - Attracting Foreign Direct Investment seeks, among other goals, increase productivity of local firms through knowledge spillovers. Nevertheless the empirical evidence is contradictory. One influential factor is the absorptive capacity of local firms. This article analyzes the effect of the presence of ex-employees of multinational companies, as employees of local firms in the absorption capacity of these firms. The study was conducted in Costa Rica, a country recognized for its successful strategy in this area. The data come from a survey of 1,167 companies conducted by the Costa Rican Observatory of Small and Mediums Enterprises in 2011. It was found that hiring former employees of multinational companies by local firms has a positive effect on the rate of absorption capacity. In short, this engagement of former employees of multinationals increases by nine percentage points the rate of absorption capacity, with differences for sectors and firms sizes.

AB - Attracting Foreign Direct Investment seeks, among other goals, increase productivity of local firms through knowledge spillovers. Nevertheless the empirical evidence is contradictory. One influential factor is the absorptive capacity of local firms. This article analyzes the effect of the presence of ex-employees of multinational companies, as employees of local firms in the absorption capacity of these firms. The study was conducted in Costa Rica, a country recognized for its successful strategy in this area. The data come from a survey of 1,167 companies conducted by the Costa Rican Observatory of Small and Mediums Enterprises in 2011. It was found that hiring former employees of multinational companies by local firms has a positive effect on the rate of absorption capacity. In short, this engagement of former employees of multinationals increases by nine percentage points the rate of absorption capacity, with differences for sectors and firms sizes.

KW - Absorption capacity

KW - Costa Rica

KW - Knowledge spillovers

KW - Multinationals companies

KW - SME

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Effects of hiring former employees of multinationals in the absorptive capacity of local firms

Abstract

Keywords

UN SDGs

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