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Bérengère PATAULT (CREST) “Sales managers, poaching and network transmission in international markets “
February 24, 11:15 am - 12:30 pm
Time: 12:15pm – 13:30 pm
Date: 24th of February 2020
Place: Room 3001
Bérangère PATAULT (CREST) “Sales managers, poaching and network transmission in international markets ”
Abstract : This paper investigates the role of managers’ networks for the acquisition of buyers in international markets. Buyers accumulation abroad is a crucial component of exporters growth: sales to new buyers explain almost half (45%) of firms’ exports growth rate heterogeneity in the medium run. Yet, the mechanisms behind buyer accumulation are vastly unknown. In this paper, we explore a simple action firms can undertake to sell to new buyers: recruiting managers knowing specific clients. We leverage sales managers’ job-to-job transitions to explore whether managers bring their former clients to their new firm. Thanks to a staggered adoption design, we find that recruiting a manager knowing a particular buyer increases the firm’s probability to match with this buyer by 0.10 percentage points. We then study the origin firm of the manager and uncover the existence of small business stealing effects. Overall, our results emphasize the very specific role of sales managers in overcoming the information frictions which preclude firms from expanding abroad.
Joint work with Clémence Lenoir (CREST-INSEE).