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Knowledge spillovers in the mutual fund industry through labor mobility

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  • Cici, Gjergji
  • Kempf, Alexander
  • Peitzmeier, Claudia

Abstract

Firms’ competitive advantages are unsustainable when competitors poach their employees away to study and recreate those advantages. We document inter-firm knowledge spillovers through labor mobility in the mutual fund industry. About one quarter of the competitive advantage of the originating fund family spills over to the recipient family. These knowledge spillovers intensify when switching managers had better access to the organization processes of the originating family and frictions hampering knowledge absorption are weaker. Ease of knowledge integration, greater organizational similarity, and lower information barriers at the recipient family—acting as mitigants for the aforementioned frictions—also magnify these knowledge spillovers.

Suggested Citation

  • Cici, Gjergji & Kempf, Alexander & Peitzmeier, Claudia, 2019. "Knowledge spillovers in the mutual fund industry through labor mobility," CFR Working Papers 18-04, University of Cologne, Centre for Financial Research (CFR), revised 2019.
    • Handle: RePEc:zbw:cfrwps:1804
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    References listed on IDEAS

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    More about this item

    Keywords

    organization capital; knowledge spillovers; mutual funds; learning-by-hiring;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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