Network memory, cultural distance and the ebb and flow of international resources – evidence from 20 years of professional player transfers to big-five European soccer leagues

Dhayanithy, Deepak and Mukherjee, Subhasree (2020) Network memory, cultural distance and the ebb and flow of international resources – evidence from 20 years of professional player transfers to big-five European soccer leagues. European Management Journal, 38(2), pp. 255-266. ISSN (print) 0263-2373

Official URL: https://doi.org/10.1016/j.emj.2019.10.003

Abstract

Human capital flow embeds firms into knowledge sharing–protection tension. In this study we explore whether firms balance this tension by regulating the volume of human capital inflow. Accordingly, we examine the presence of ebb and flow cycle in human capital inflow. Ebb is expressed in terms of net negative change in volume of human capital inflow of a firm, at any given period, with respect to prior period. Flow is expressed in terms of net positive change. As human capital flow embeds firms into interorganizational network, we examine moderating effects of network closure and network status on the ebb and flow. Further, we examine the role of cultural distance on the moderating effect of network closure and status on ebb and flow. We test our hypotheses based on professional football player transfers among the clubs of the Big-five European Leagues. The results indicate presence of ebb and flow in human capital inflow. Also there is moderating effect of network closure and status, such that they diminish the ebb and flow cycle. We also found evidence that cultural distance further determines effectiveness of network closure and status in diminishing ebb and flow.

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