Speaker : Wonsang Ryu (Yonsei University)

Title : Human Resource Redeployability and International Market Entry Decisions: The Role of Language in Cross-Border Redeployment

Date : Wednesday, May 13

Time : 4:30–5:50 PM (usual time)

Venue: International Hall 90402

Abstract:

International business research has long viewed the cross-border sharing of firm-specific intangible resources as a key mechanism underpinning the existence and value creation of MNEs. Although this perspective has largely rested on the assumption that intangible resources are freely transferable, such resources often involve tacit components embedded in human resources. This implies that firm-specific intangible resources may not be transferred as freely as assumed in prior research and that their effective transfer requires redeploying the individuals who embody them. Building on this insight, we examine how the cross-border redeployability of human resources influences MNEs’ international market entry decisions, using the context of sell-side analyst firms. Focusing on language as a critical determinant of analysts’ cross-border redeployability, we argue that alignment between an analyst firm’s language portfolio and the language used in a potential host country affects entry-related decisions. Specifically, we predict that an analyst firm’s presence in more countries sharing the target country’s language increases the likelihood of entry into the target country, enables a larger entry scale, and facilitates post-entry size adjustments—both expansion and contraction. We test these predictions using data on 251 firms’ market entries into 59 countries over 21 years.