Managers as knowledge carriers - Explaining firms' internationalization success with manager mobility

While managerial mobility is ubiquitously seen as an integral part of the success in firms' internationalization, discerning its empirical merits has been impaired by the paucity of quasi experimental evidence, or adequate instrumental variables. To overcome these objective limitations, this paper proposes a novel identification strategy, which uses a control function based on on-the-job search theory to correct estimates for the presence of self-selected mobility flows. Our analysis confirms the finding that managers' specific market experience matters for firms' internationalization, especially when it derives from longer tenures at the former jobs.Regarding the attributes of managerial knowledge, our results reveal that on-the-job earned experience is at least as effective for firms' internationalization as in born knowledge (i.e. origins) and that managers' personal network of customers is an important asset in managers' fund of expertise for the expansion into new markets.(c) 2022 Elsevier B.V. All rights reserved.