Abstract
Using a human capital lens, we argue that former entrepreneurs are endowed with execution skills: a generalist ability to create and exploit new market opportunities by acquiring and mobilizing resources. We propose that entrepreneurial human capital enhances innovation inside established firms by developing new uses for existing, but possibly underused knowledge. Combining Community Innovation Survey and register data from Denmark, we find that entrepreneurial hires are associated with higher sales from innovation, with stronger effects for incremental rather than radical innovation. Hiring entrepreneurs in middle management is particularly important for firm innovation, consistent with execution skills’ higher effectiveness when paired with broader decision rights and resource access. Together, our findings suggest that entrepreneurial hires provide a way for firms to potentially appropriate a larger share of the value their knowledge generates.
Original language | English |
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Publication date | 2021 |
Number of pages | 42 |
Publication status | Published - 2021 |
Event | DRUID21 Conference - Copenhagen Business School, Frederiksberg, Denmark Duration: 18 Oct 2021 → 20 Oct 2021 Conference number: 42 https://conference.druid.dk/Druid/?confId=62 |
Conference
Conference | DRUID21 Conference |
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Number | 42 |
Location | Copenhagen Business School |
Country/Territory | Denmark |
City | Frederiksberg |
Period | 18/10/2021 → 20/10/2021 |
Internet address |
Keywords
- Entrepreneurship
- Execution
- Human capital
- Innovation
- Learning by hiring
- Middle management