Learning–by–Hiring: When Is Mobility More Likely to Facilitate Interfirm Knowledge Transfer?

Abstract

To investigate the conditions under which learning-by-hiring (or the acquisition of knowledge through the hiring of experts from other firms) is more likely, we study the patenting activities of engineers who moved from United States (U.S.) firms to non-U.S. firms. Statistical findings from negative binomial regressions show that mobility is more likely to result in interfirm knowledge transfer when (1) the hiring firm is less path dependent, (2) the hired engineers possess technological expertise distant from that of the hiring firm, and (3) the hired engineers work in noncore technological areas in their new firm. In addition, the results support the idea that domestic mobility and international mobility are similarly conducive to learning-by-hiring. Thus, our paper suggests that learning-by-hiring can be useful when hired engineers are used for exploring technologically distant knowledge (rather than for reinforcing existing firm expertise) and also for extending the hiring firm's geographic reach.

The Impact of Long-term Scientific Mobility on the Creation of Persistent Knowledge Networks

“…Several authors have investigated the influence of employee mobility on knowledge flows in the case of firms (Almeida and Kogut, 1999;Oettl and Agrawal, 2008;Rosenkopf and Almeida, 2003;Song et al, 2003). Basically the assumption is that movers will maintain relationships with at least some of their previous colleagues and that these relationships will serve as conduits for continued knowledge exchanges between them.…”

Tracing mobile inventors—The causality between inventor mobility and inventor productivity

“…The literature reveals that hiring a key inventor from another firm can lead to knowledge transfer (Arrow, 1962, Song et al 2003. Firms characterized by a lower technology level can use this knowledge to catch up and thus are motivated to attract productive inventors (Gilfillan 1935).…”

Knowing Me, Knowing You: Inventor Mobility and the Formation of Technology-oriented Alliances

“…In a static view, inventor mobility and alliance formation can therefore been seen as substitutes for acquiring external knowledge (Song et al, 2003), implying a negative relation between inventor mobility and alliance formation. We take a dynamic perspective of the process of alliance formation, however, and highlight how mobile inventors facilitate frame alignment between potential alliance partners and therefore increase the likelihood of alliance formation.…”

“…We propose that individuallevel, firm-level and alliance-level moderators are likely to affect the link between inventor mobility and alliance formation (Gulati & Westphal, 1999;Song et al, 2003). Differences among mobile employees, between potential alliance partners, and the alliance objectives determine the degree of informational asymmetry and interpretive uncertainty as well as mobile inventors' ability to align organizational frames (Weber & Mayer, 2014).…”

“…In this context, the role of mobile inventors as carriers of valuable skills and technological knowledge is well understood. Recruiting inventors from competing firms allows the hiring firm to enjoy benefits from knowledge spillovers and to increase its innovative performance (Palomeras & Melero, 2010;Rosenkopf & Almeida, 2003;Singh & Agrawal, 2011;Song, Almeida, & Wu, 2003). Whereas existing literature provides compelling arguments on how firms acquire and internalize technological knowledge from mobile inventors into their own R&D efforts, it has not systematically taken into account how inventor mobility shapes firms' strategic actions and other innovation-related organizational outcomes (Mawdsley & Somaya, 2016).…”