Within or Without? How Firms Combine Internal and External Labor Markets to Fill Jobs

Bidwell, Matthew; Keller, JR

doi:10.5465/amj.2012.0119

Cited by 118 publications

(99 citation statements)

References 74 publications

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“…A number of scholars have noted that employers have much more information about their own employees than they do about external candidates (e.g. Doeringer and Piore 1971;Gibbons and Katz 1991), and information asymmetries feature heavily in transaction cost approaches to employment (Bidwell and Keller 2014;Williamson et al 1975). Because they can observe how their employees performed in prior roles, employers have an advantage in evaluating those workers' ability.…”

Section: Information Asymmetries and Effects On Responsibilitiesmentioning

confidence: 99%

Shifts and Ladders: Comparing the Role of Internal and External Mobility in Managerial Careers

Bidwell

Mollick

2015

Organization Science

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105

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Employees can build their careers either by moving into a new job within their current organization or else by moving to a different organization. We use matching perspectives on job mobility to develop predictions about the different roles that those internal and external moves will play within careers. Using data on the careers of master of business administration alumni, we show how internal and external mobility are associated with very different rewards: upward progression into a job with greater responsibilities is much more likely to happen through internal mobility than external mobility; yet despite this difference, external moves offer similar increases in pay to internal, as employers seek to attract external hires. Consistent with our arguments, we also show that the pay increases associated with external moves are lower when the moves take place for reasons other than career advancement, such as following a layoff or when moving into a different kind of work. Despite growing interest in boundaryless careers, our findings indicate that internal and external mobility play very different roles in executives' careers, with upward mobility still happening overwhelmingly within organizations.

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Section: Information Asymmetries and Effects On Responsibilitiesmentioning

confidence: 99%

Shifts and Ladders: Comparing the Role of Internal and External Mobility in Managerial Careers

Bidwell

Mollick

2015

Organization Science

Self Cite

105

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“…Most newly established ventures do not have formal human resources strategies and may, thus, use pipelines as a staffing practice to cope with many challenges that labour markets present, such as information asymmetries, applicant scarcity, and costly mis‐hires (Brymer et al, ). By using affinity groups, social ties, and existing organizations (that already performed the necessary screening among employees) as pipelines through which they acquire some of their human resources, (new) firms may better deal with the uncertainty in the labour market, reduce the searching and integration costs related to human capital acquisition, and circumvent situations of adverse selection (Bidwell and Keller, ; Dahl and Sorenson, ). This staffing strategy may be especially relevant in new and small firms, where hiring costs can be substantial (Blatter et al, ).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Leaving Employment to Entrepreneurship: The Value of Co‐worker Mobility in Pushed and Pulled‐Driven Start‐ups

Rocha

Carneiro

Varum

2017

J Management Studies

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By combining insights from the widespread research on entrepreneurial spin-offs and from the emerging literature on hiring choices in start-ups, we investigate the role of co-worker mobility in pushed and pulled spin-off survival. Using rich register data and a multi-stage model addressing self-selection and endogeneity issues, we cover 28,353 spin-offs launched between 1992 and 2007. We find that spin-offs hiring co-workers from the parent firm survive longer. This survival bonus is greater in pushed-driven start-ups. We investigate two different mechanisms through which co-worker mobility may improve spin-off survival -knowledge transfer and reduced searching costs. While both mechanisms play a role in explaining the survival bonus in pulled spin-offs, co-worker mobility seems to help pushed spin-offs to survive mostly by reducing initial recruitment costs. This work provides novel insights on the role of context surrounding new venture creation and inter-firm labour mobility.

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“…The preceding collaboration reduces the uncertainty about the employees' abilities, and the fit between candidates with the hiring organization can be assessed at comparatively low costs (Spence 1973;Oyer and Schaefer 2010;Bidwell and Keller 2014). Moreover, also direct search costs are presumably lower since no open call hiring process has to be 8 1 initiated for identifying highly capable R&D employees.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

The Impact of Open Innovation on Employee Mobility and Entrepreneurship

Simeth

Mohammadi

2017

SSRN Journal

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The impact of open innovation on employee mobility and entrepreneurship Preliminary draft: February 2017 ABSTRACTPrior research showed that firms can increase innovation performance by leveraging external sources of knowledge. However, our understanding regarding potential drawbacks of open collaborative approaches for innovation is still limited. In this paper, we investigate the relationship between R&D collaboration and the departure of skilled employees. Scientists and engineers who interact with external partners for innovation may increase their outside options, resulting in higher rates of employee mobility to other firmsand employee entrepreneurship. We analyze our research question using the Swedish Community Innovation (CIS) survey combined with employer-employee register data. Our econometric analysis reveals that a stronger use of research collaborations by firms leads to an increasing number of exits of skilled employees.

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Within or Without? How Firms Combine Internal and External Labor Markets to Fill Jobs

Cited by 118 publications

References 74 publications

Shifts and Ladders: Comparing the Role of Internal and External Mobility in Managerial Careers

Shifts and Ladders: Comparing the Role of Internal and External Mobility in Managerial Careers

Leaving Employment to Entrepreneurship: The Value of Co‐worker Mobility in Pushed and Pulled‐Driven Start‐ups

The Impact of Open Innovation on Employee Mobility and Entrepreneurship

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