Enhancing firm performance through intra-group managerial experience: Evidence from group-affiliated firms in Korea

Young-Choon Kim (), Taekjin Shin () and Sangchan Park ()
Additional contact information
Young-Choon Kim: UNIST School of Business Administration
Taekjin Shin: San Diego State University
Sangchan Park: KAIST College of Business

Asia Pacific Journal of Management, 2021, vol. 38, issue 2, No 2, 435-465

Abstract: Abstract Although business groups often benefit from tangible and intangible resource sharing across member firms, little is known about whether and how sharing managers’ human capital within a business group can contribute to the performance of group-affiliated firms. Combining the strategic human capital perspective and studies of business groups, we argue that a business group-affiliated firm can enhance its economic performance by acquiring experience-based human capital from managers from other affiliates within the same group, as such intra-group managerial experience provides a source of strategic benefit that is distinct from either internal (i.e., within the focal firm) or external (i.e., outside the business group) experience. Our analyses of South Korean managers’ career data suggest that managerial experience acquired from other affiliated firms within a business group has a significant and positive effect on the focal firm’s performance. We also show that such intra-group managerial experience is particularly beneficial for firms with weak resources, firms in less diversified groups, and firms in less stable environments.

Keywords: Business group; Competitive advantage; Managerial experience; Human capital; Korea (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10490-019-09671-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:38:y:2021:i:2:d:10.1007_s10490-019-09671-3

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10490/PS2

DOI: 10.1007/s10490-019-09671-3

Access Statistics for this article

Asia Pacific Journal of Management is currently edited by Jane Lu

More articles in Asia Pacific Journal of Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().