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Migration and Servicification: Do Immigrant Employees Spur Firm Exports of Services?

PublicationArticle (in press)
Andreas Hatzigeorgiou, Export, Firms, Magnus Lodefalk, Migration, Services, Trade

Abstract

Services play an increasingly important role in production, employment and international trade but are subject to substantially higher trade costs relative to manufactured goods. Knowledge of how these trade costs can be mitigated is important for facilitating trade of services. In this paper, we analyze the role of immigrant employees as facilitators of firm exports of services, a role that remains largely unexamined. We bridge the gap in existing research by drawing on new data for nearly 30,000 Swedish firms during the period 1998‐2007 within a heterogeneous firm framework. The results have important policy implications. As the multilateral approach to facilitating trade is challenged and more countries are imposing measures to restrict the cross‐country mobility of people, policymakers may need to find new ways to promote exports of services. Our results indicate that immigrant employees spur firms’ export of services activities: hiring one additional foreign‐born worker can increase services exports by approximately 2.5 percent, on average, with a stronger effect found for skilled and newly arrived immigrants. Therefore, policymakers could leverage the findings of this study to implement initiatives that utilize high‐skilled immigrants to promote services exports.

Lodefalk, M. & Hatzigeorgiou, A. (in press). Migration and Servicification: Do Immigrant Employees Spur Firm Exports of Services?The World Economy. DOI: 10.1111/twec.12838ePDFPDF

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Migration and Servicification: Do Immigrant Employees Spur Firm Exports of Services?
Artikel (in press)Publication
Lodefalk, M. & Hatzigeorgiou, A.
Publication year

2019

Published in
Abstract

Services play an increasingly important role in production, employment and international trade but are subject to substantially higher trade costs relative to manufactured goods. Knowledge of how these trade costs can be mitigated is important for facilitating trade of services. In this paper, we analyze the role of immigrant employees as facilitators of firm exports of services, a role that remains largely unexamined. We bridge the gap in existing research by drawing on new data for nearly 30,000 Swedish firms during the period 1998‐2007 within a heterogeneous firm framework. The results have important policy implications. As the multilateral approach to facilitating trade is challenged and more countries are imposing measures to restrict the cross‐country mobility of people, policymakers may need to find new ways to promote exports of services. Our results indicate that immigrant employees spur firms’ export of services activities: hiring one additional foreign‐born worker can increase services exports by approximately 2.5 percent, on average, with a stronger effect found for skilled and newly arrived immigrants. Therefore, policymakers could leverage the findings of this study to implement initiatives that utilize high‐skilled immigrants to promote services exports.

Peer Interaction and Pioneering Organizational Form Adoption: A Tale of the Two First For-Profit Stock Exchanges
Article (in press)Publication
Cheung, Z., Gustafsson, R. & Nykvist, R.
Publication year

2021

Abstract

Building on a historical case study on the first two stock exchanges to adopt the now globally dominant for-profit organizational form, the Stockholm Stock Exchange in 1993 and the Helsinki Stock Exchange in 1995, we argue that interaction among socially proximate peers contributes to pioneering organizational form adoption within an industry, particularly when such forms are introduced by established organizations. Peer interaction can induce a search for technically efficient organizational forms through the sharing of collective experiences, the establishment of collective assumptions, and a joint search for solutions. Together, these factors contribute to the legitimization of novel organizational forms in the local setting before the adoption of the first instantiation of those forms. We propose a context-sensitive multilevel model of peer-interaction-induced pioneering organizational form adoption that considers shared macro environmental drivers, idiosyncratic local environmental drivers, and peer interaction as central social mediators between the two.

The matter of locality: Family firms in sparsely populated regions
Article (in press)Publication
Lundberg, H. & Öberg, C.
Publication year

2021

Abstract

This paper explores the interaction and interdependence between family firms and sparsely populated regions. Interactivity underlines the dynamics of the setting and how it changes based on activities between the firm and the context, whereas interdependence refers to how the family firm and the region become mutually reliant on one another. Five case studies show that while the firms act under similar conditions in terms of disparity, their interplay with and dependence on the region differ. The study points to how the citizenship of the family firms is fundamental and how employment is at the heart of the interdependence, while those firms interacting most strongly with the region are those expanding beyond what would be expected by a family firm in terms of traditions and risk aversion. This again indicates a complex pattern of interactivities and interdependencies between family firms and sparsely populated regions. The paper provides important dimensions to theories on family firms’ local contexts specifically related to under-researched settings of sparsely populated regions and important implications for managers, public actors and policy makers, not the least related to support to such contexts.

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