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

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

Research output: Contribution to journalArticlepeer-review

Abstract

The attraction of foreign direct investment seeks, among other things, to increase the productivity of local companies through knowledge spillovers. However, the empirical evidence in this regard is contradictory. One influential factor is the absorptive capacity of the local companies. This article analyzes the effect of the presence of former employees of multinational corporations as employees of local companies, on the absorptive capacity of said companies. The study was done in Costa Rica, a country known for its successful strategy in the subject matter. The data come from a survey applied to 1167 companies by the Observatorio Costarricense de las Pymes in 2011. It was found that the hiring of former employees of multinational corporations by local companies has a positive effect on the index of absorptive capacity of companies in all productive sectors. Specifically, this hiring of former employees increases the index of absorptive capacity by nine percentage points, with differences by sector and the size of the company.

Translated title of the contributionEfectos de la contratación de exempleados de multinacionales en la capacidad de absorción en empresas locales
Original languageEnglish
Pages (from-to)670-682
Number of pages13
JournalContaduria y Administracion
Volume62
Issue number2
DOIs
StatePublished - Apr 2017

Keywords

  • Absorptive capacity
  • Costa Rica
  • Knowledge spillovers
  • Multinationals companies
  • SMEs

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