2018
DOI: 10.1111/obes.12254
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An Empirical Investigation on the Transfer of Expatriates Within MNCs from a Knowledge Perspective

Abstract: We study the use of expatriates in transferring knowledge within a multinational corporation (MNC). We argue that MNCs use expatriates to allocate knowledge between headquarters and its foreign affiliates. With data from MNCs headquartered in South Korea, we trace unobservable knowledge using observable labour mobility. Our empirical analysis shows that the use of expatriates increases as communication between South Korea and the host country becomes more costly. However, the extent to which the use of expatri… Show more

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Cited by 4 publications
(4 citation statements)
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“…However, conditional on offshoring, they do not offshore larger values. This “poaching” effect on offshoring is new and consistent with the findings on the knowledge spillovers through labour mobility reported in Astorne‐Figari and Lee (2018), Gumpert (2018), Poole (2013) and Mion and Opromolla (2014). All these results combined together reveal that workers with destination‐specific knowledge acquired either in their country of origin or in previous companies help domestic firms reduce the fixed costs of offshoring to a specific destination country, especially if they are in a white‐collar occupation.…”
Section: Resultssupporting
confidence: 89%
“…However, conditional on offshoring, they do not offshore larger values. This “poaching” effect on offshoring is new and consistent with the findings on the knowledge spillovers through labour mobility reported in Astorne‐Figari and Lee (2018), Gumpert (2018), Poole (2013) and Mion and Opromolla (2014). All these results combined together reveal that workers with destination‐specific knowledge acquired either in their country of origin or in previous companies help domestic firms reduce the fixed costs of offshoring to a specific destination country, especially if they are in a white‐collar occupation.…”
Section: Resultssupporting
confidence: 89%
“…This finding suggests that some country characteristics can affect intra‐firm trade within MNCs. Regarding industry characteristics, Astorne‐Figari and Lee (2019) show that affiliates in more complex industries depend heavily on resources from parent firms to minimize communication costs 9 . Finally, we deflated the variables to estimate productivity in the previous chapter using only the US industry price index rather than the country‐industry level index; therefore, we must control for unobservable country and/or industry characteristics to circumvent potential bias in the estimation.…”
Section: Empirical Modelmentioning
confidence: 99%
“… Astorne‐Figari and Lee (2019) focus on manager transfers as a crucial resource from the parents, but we consider intra‐firm trade as in the similar mechanism and an industry characteristic would matter with it in the same line.…”
mentioning
confidence: 99%
“…This paper contributes to the literature by proposing a novel aspect of the determinants of expatriate utilization. First, the literature focuses on the use of PCN managers in foreign subsidiaries as a means of knowledge transfer and control (Astorne-Figari and Lee, 2019; Cho, 2018; Tan and Mahoney, 2006). We extend the literature and emphasize the significance of the role of productivity gaps among subsidiaries in shaping the shares of PCNs who are less likely to leave for competing firms.…”
Section: Introductionmentioning
confidence: 99%