Lost but Not Gone: Dyadic Collaborative Structure and Post-Mobility Knowledge Spillover

Abstract

How do differences in the collaborative structure between the hiring firm and the losing firm affect knowledge spillover following employee mobility? We demonstrate that knowledge spill-in and spill-back are the greatest when a firm with a strong collaborative density- i.e., a high level of intra-firm collaboration- hires an employee from, or loses an employee to, a firm that also has a strong collaborative density. Access to the knowledge not developed by the mobile employee is also the greatest when both firms in the mobility dyad exhibit a strong collaborative density. Finally, when the collaborative density is high for both firms, the losing firm actually experiences net knowledge gains from losing an employee. We discuss the critical role of a firm’s collaborative structure on knowledge-building activities following the mobility.