The Challenges of Within-Firm Mobility with Geographic Relocations: Learning-By-Hiring, Internally?

Abstract

Strategic human capital research suggests that within-firm mobility is more effective in enabling knowledge transfer and collaborations than between-firm mobility. However, geographic relocations that are often associated with mobility may reduce the comparative benefits of within-firm mobility. Thus, I investigate how within-firm geographic mobility can negatively affect mobile individuals' performance and potential exit. Our analyses of individual-level mobility and patent collaboration data from major U.S. technology firms suggest that within-firm mobility, vis-à-vis between-firm mobility, is associated with a reduction in performance and an increase in the exit when associated with geographic relocations. Sub-group analyses further explicate how these two types of mobility can differentially affect the focal individuals depending on their pre-mobility productivity, suggesting a need for careful deployments of internal transfers for (un)productive individuals.