Location
260-055, Owen G. Glenn Building
Start Date
12-15-2014
Description
This study aims to understand how characteristics of a firm’s hiring network affect firm productivity using an inter-firm hiring network constructed from individual job histories. We separate IT labor from non-IT labor and use the network characteristics constructed from the two types labor to understand how they affect firm performance. We find that hiring IT workers from a diverse set of firms can provide access to novel and non-redundant information, which can substantially improve firm productivity. Interestingly, we find the opposite for hiring non-IT labor. In fact, having a cohesive network of non-IT labor hires is instrumental for implementing complementary organizational practices that are different to transfer without frequent and repeated exposures. Together, these results demonstrate the importance of incorporating a network perspective in understanding the full impact of spillover effects from organizational hiring activities.
Recommended Citation
Wu, Lynn; Jin, Fujie; and Hitt, Lorin, "Are All Spillovers Created Equal? A Network Perspective on IT Labor Movements" (2014). ICIS 2014 Proceedings. 3.
https://aisel.aisnet.org/icis2014/proceedings/EconomicsandValue/3
Are All Spillovers Created Equal? A Network Perspective on IT Labor Movements
260-055, Owen G. Glenn Building
This study aims to understand how characteristics of a firm’s hiring network affect firm productivity using an inter-firm hiring network constructed from individual job histories. We separate IT labor from non-IT labor and use the network characteristics constructed from the two types labor to understand how they affect firm performance. We find that hiring IT workers from a diverse set of firms can provide access to novel and non-redundant information, which can substantially improve firm productivity. Interestingly, we find the opposite for hiring non-IT labor. In fact, having a cohesive network of non-IT labor hires is instrumental for implementing complementary organizational practices that are different to transfer without frequent and repeated exposures. Together, these results demonstrate the importance of incorporating a network perspective in understanding the full impact of spillover effects from organizational hiring activities.