How hiring managers from multinational companies helps domestic firms to start exporting

What is it about?

Domestic firms focusing on local markets usually find it difficult to start exporting because of a lack of managerial capabilities and knowledge about foreign markets. Our work shows that hiring managers from multinational companies can help to improve their export performance. Domestic firms benefit more if they are organizationally similar to multinational firms, e.g. if they already have employees with foreign backgrounds or if they have more developed hierarchical structures.

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Photo by Maksym Kaharlytskyi on Unsplash

Photo by Maksym Kaharlytskyi on Unsplash

Why is it important?

Exporting can be essential for firms to scale up production and boost profitability. Yet, starting to export can be challenging. We show that recruiting managers with experience from multinational companies can effectively overcome the difficulties associated with implementing an export strategy.