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Title: | Multinational firms and the quest for global talent: Employing (skilled) foreign workers at home and abroad | Authors: | Belderbos, Rene LETEN, Bart Nguyen, Ngoc Han VANCAUTEREN, Mark |
Issue Date: | 2023 | Publisher: | PALGRAVE MACMILLAN LTD | Source: | JOURNAL OF INTERNATIONAL BUSINESS STUDIES, | Status: | Early view | Abstract: | Multinational firms can access global talent in two ways: by employing migrants in their home country, or by employing foreign workers in their overseas affiliates. Taking a knowledge-based perspective, we conceptualize these employment decisions as simultaneous and subject to management coordination. Substitution effects are greater when there is a larger wage cost differential between home and host countries, leading to a cost-reduction motivation for foreign expansion and the offshoring of employment. Substitution also occurs when R & D intensive firms employ highly skilled and internationally mobile foreign workers and employ these where the worker's knowledge and skills can be most productively put to use. In contrast, a complementary relationship occurs when the migrant country exhibits a high contextual distance with the home country of the firm, leading to knowledge (diversity) benefits of migrant employment at home when expanding abroad. Analyzing employee-employer and foreign affiliate data for multinational firms in the Netherlands (2008-2016) and estimating simultaneous equation models, we find support for these hypotheses. Our findings suggest that policies that restrict immigration may have a negative impact on the competitiveness of home-country multinational firms by limiting their ability to engage in value enhancing coordination of domestic and foreign employment growth. | Notes: | Belderbos, R (corresponding author), Katholieke Univ Leuven, Fac Econ & Business, Leuven, Belgium.; Belderbos, R (corresponding author), Maastricht Univ, Sch Business & Econ, Maastricht, Netherlands.; Belderbos, R (corresponding author), Maastricht Univ, UNU MERIT, Maastricht, Netherlands. rene.belderbos@kuleuven.be |
Keywords: | knowledge-based view;migrants;contextual distance;skill-intensive | Document URI: | http://hdl.handle.net/1942/41502 | ISSN: | 0047-2506 | e-ISSN: | 1478-6990 | DOI: | 10.1057/s41267-023-00643-w | ISI #: | 001049103600001 | Category: | A1 | Type: | Journal Contribution |
Appears in Collections: | Research publications |
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Multinational firms and the quest for global talent_Author version.pdf Until 2024-08-31 | Peer-reviewed author version | 1.67 MB | Adobe PDF | View/Open Request a copy |
Multinational firms and the quest for global talent_Published version.pdf Restricted Access | Early view | 345.83 kB | Adobe PDF | View/Open Request a copy |
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