Essays on Knowledge Transfer and Worker Mobility

Abstract

This dissertation examines knowledge transfer mechanisms across organizational boundaries, focusing on the movement of customer-specific knowledge through worker mobility and employee spinoffs. While prior research has extensively studied the transfer of technical expertise between firms, the movement of relational and network knowledge has remained empirically challenging to measure.Using comprehensive administrative microdata from Turkey's Enterprise Information System (2012–2020), I combine employer-employee matched records with value-added tax (VAT) transaction data to track both labor flows and firm-to-firm business relationships. This unique dataset enables the development of novel empirical strategies to identify knowledge transfer effects by exploiting variations in workers' exposure to specific customers and analyzing performance differences between employee spinoffs and other entrants.The dissertation consists of three main chapters. The first chapter introduces the dataset and provides descriptive evidence on worker mobility patterns and network formation dynamics. The second chapter investigates how customer-specific knowledge transfers through worker mobility, finding that firms hiring workers with relevant customer knowledge are 15% more likely to form new connections with those customers compared to similar customers unknown to the worker. This effect is significantly stronger for contact workers in customer-facing roles than for routine workers, underscoring the importance of relationship-specific knowledge. The third chapter examines employee spinoffs—firms founded by former employees of incumbent companies—and shows that they outperform other entrants by approximately 30% in sales. This advantage can be partly explained by human capital accumulated through parent-firm tenure and by inherited customer relationships. However, a sizable residual advantage remains, likely reflecting team-specific routines, coordination efficiencies, and other intangible synergies developed through shared experience at the parent firm.Collectively, these findings advance our understanding of market dynamics by quantifying previously elusive knowledge flows. They reveal how customer relationships transfer across organizational boundaries, shaping firm performance and competitive landscapes. The results provide empirical evidence that informs policy debates surrounding labor mobility restrictions and non-compete agreements while highlighting the economic significance of relationship capital in firm growth and market competition.