Whom are you promoting? Positive voluntary public disclosures and executive turnover

Stern, Ithai; James, Sharon D.

doi:10.1002/smj.2393

Cited by 42 publications

(21 citation statements)

References 139 publications

(181 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Yet, employee know‐how that is also of value to competing companies offers no such protective shield, as employees with valuable knowledge can walk out the door to join a rival firm or create a new venture (Coff, ; Ganco et al, ; Kacperczyk, , ; Starr, Balasubramanian, & Sakakibara, ), taking their knowledge away from the focal firm to the new employer. Moreover, competing firms may actively poach employees with valuable knowledge to gain access to the focal firm's knowledge sources and technological expertise ( Businessweek, ; Rao & Drazin, ; Stern & James, ). Both can have dire consequences for the focal firm as they facilitate technological knowledge transfer (e.g., Agarwal et al, ; Almeida & Kogut, ; Rosenkopf & Almeida, ; Song, Almeida, & Wu, ) and enhance the rival firm's product innovation (Rao & Drazin, ).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Corporate social responsibility as a defense against knowledge spillovers: Evidence from the inevitable disclosure doctrine

Flammer

Kacperczyk

2019

Strategic Management Journal

162

View full text Add to dashboard Cite

Research Summary We examine whether companies respond to the threat of knowledge leakage by strategically increasing their engagement in corporate social responsibility (CSR). To obtain exogenous variation in the threat of knowledge leakage, we exploit a natural experiment provided by the rejection of the inevitable disclosure doctrine (IDD) by several U.S. states. Using a difference‐in‐differences methodology we find that, following the rejection of the IDD, companies significantly increase their CSR. Our proposed rationale is that CSR helps mitigate knowledge leakage by (i) reducing employees' propensity to join a rival firm, and (ii) reducing employees' propensity to disclose the firm's valuable knowledge even if they join a rival firm. Evidence from a laboratory experiment, an online experiment, and a survey of knowledge workers is supportive of these arguments. Managerial Summary We study the role of CSR in companies' response to the threat of knowledge leakage—a major managerial challenge that has important implications for firms' innovation and competitiveness. We use three different research designs (an analysis of companies' CSR policies in response to an increased threat of knowledge leakage; a survey of knowledge workers; and an experiment conducted both online and in a laboratory setting). The results show that CSR is perceived to mitigate the threat of knowledge leakage. In particular, (i) CSR reduces knowledge workers' propensity to join rival firms (i.e., they are less likely to “walk”) and, even if they do, (ii) CSR reduces their propensity to disclose the firm's valuable knowledge to their new employer (i.e., they are less likely to “talk”).

show abstract

Section: Hypothesis Developmentmentioning

confidence: 99%

Corporate social responsibility as a defense against knowledge spillovers: Evidence from the inevitable disclosure doctrine

Flammer

Kacperczyk

2019

Strategic Management Journal

162

View full text Add to dashboard Cite

show abstract

“…When there are high levels of information asymmetries, hiring firms are less likely to poach employees and those who are actually high quality may face a lemons discount when they consider other options in the labor market, thus constraining employee mobility. When information about the value of an employee becomes less ambiguous, for example through voluntary disclosures about value creation and value appropriation strategies of the firm, the likelihood that employees will be poached increases (Stern & James, 2016).…”

Section: Divergent Labor Market Frictionsmentioning

confidence: 99%

Bridging Strategic Human Capital and Employee Entrepreneurship Research: A Labor Market Frictions Approach

Campbell

Kryscynski

Olson

2017

Strat. Entrepreneurship J.

View full text Add to dashboard Cite

Research summary Strategic human capital research sits at the intersection of strategy and employee mobility research. Employee entrepreneurship research sits at the intersection of entrepreneurship and employee mobility research. We demonstrate how a shared focus on labor market frictions connects these two complementary but largely disparate literatures through their mutual emphasis on employee mobility. Our examination of the impact of various labor market frictions on employee mobility to competitor firms and employee transitions to entrepreneurship suggests that the outcomes of some frictions are divergent across the two literatures, the outcomes of some are aligned, and the outcomes of some are ambiguous. The complex interplay of labor market frictions provides opportunities for future research specifically exploring the intersection of the strategic human capital and employee entrepreneurship literatures. Managerial summary Our research suggests that some factors that prevent employees from leaving their employers to join competitor companies may also keep those employees from leaving to start new companies. Other factors that prevent employees from leaving their employers, however, may actually encourage employees to leave to start new companies. We identify areas for future research to help us understand better when companies’ efforts to hold on to their workers are effective at preventing both movement to competitor companies as well as to entrepreneurship. Copyright © 2017 Strategic Management Society.

show abstract

“…Coupled with leader migration, falling average leader tenures has led to the creation of a labour market for experienced leaders (Zhang, ) who have a leadership track record that boards can assess in the hiring process. This process is being aided increasingly by enhanced media coverage of the leadership position (Malmendier and Tate, ; Stern and James, ). Hence, we suggest that, in such settings, boards will face greater asymmetric information about inside compared with outside leader candidates’ competencies as leader in the hiring process.…”

Section: Discussionmentioning

confidence: 99%

“…The scrutiny of leaders has increased through the rise in media (and analyst) coverage, which has led to greater reporting of leaders' actions and the rise of celebrity status (Malmendier and Tate, 2009). Such media attention changes the informational dynamics that shape succession decisions for internal and external leader candidates (Malmendier and Tate, 2009;Stern and James, 2016). In addition, falling average leader tenure has created a labour market of experienced leaders (Zhang, 2011), with a concomitant increase in the proportion of leaders appointed from outside the organization Neilson, 2015, 2013) 2 with prior leader experience (Bragaw and Misangyi, 2016;Hamori and Koyuncu, 2015;Karlsson and Neilson, 2009;Zhang, 2011).…”

Section: Introductionmentioning

confidence: 99%

Information Asymmetries in the Hiring Process and the Risk of New Leader Dismissal: Insights from English Premier League Soccer Organizations

Desai

Lockett

Paton

2017

British J of Management

View full text Add to dashboard Cite

Why are some new leaders dismissed more quickly than others? Adopting agency theory logic, the authors examine how different succession contexts shape boards' information asymmetries about a potential candidate's competencies in the hiring process, which influences the propensity of making poor hiring decisions and hence the risk of new leader dismissal. Employing duration analysis on a sample of 164 newly appointed leaders in the English premier league (1996-2014), the authors find that the risk of new leader dismissal is: (i) greater when the predecessor leader's exit was initiated by them rather than by the board; (ii) greater when following a longer-tenured predecessor; and (iii) lower for outside successions compared with inside successions.

show abstract

Whom are you promoting? Positive voluntary public disclosures and executive turnover

Cited by 42 publications

References 139 publications

Corporate social responsibility as a defense against knowledge spillovers: Evidence from the inevitable disclosure doctrine

Corporate social responsibility as a defense against knowledge spillovers: Evidence from the inevitable disclosure doctrine

Bridging Strategic Human Capital and Employee Entrepreneurship Research: A Labor Market Frictions Approach

Information Asymmetries in the Hiring Process and the Risk of New Leader Dismissal: Insights from English Premier League Soccer Organizations

Contact Info

Product

Resources

About