This paper examines how firms’ recruitment of high-skilled foreign R&D workers affects firm-level exploration. We argue that by hiring foreign R&D workers, firms are more likely to gain access to novel and complementary knowledge, which will foster exploration. Examining a sample of 376 Danish R&D active firms over the period from 2001 to 2013, we show the effect is most pronounced when foreign R&D hires originate from geographical backgrounds that are represented to a lesser extent within firms’ incumbent R&D workforce. Moreover, we show that this effect holds, even when the cognitive distance between these new hires and firms’ incumbent R&D workforce is low. Finally, we highlight the temporary nature of this “exploration premium” as these results only hold for newly hired foreign workers.
|Title of host publication||Proceedings of the Eighty-First Annual Meeting of the Academy of Management|
|Number of pages||6|
|Place of Publication||Briarcliff Manor, NY|
|Publisher||Academy of Management|
|Publication status||Published - 2021|
|Event||The Academy of Management Annual Meeting 2021: Bringing the Manager Back in Management - Online|
Duration: 29 Jul 2021 → 4 Aug 2021
Conference number: 81
|Conference||The Academy of Management Annual Meeting 2021|
|Period||29/07/2021 → 04/08/2021|
|Series||Academy of Management Proceedings|
Bibliographical noteConference entry title: "In search for new knowledge: When does hiring foreign R&D workers foster exploration?".
- Best paper