Center for Advanced Management
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Prof. George Chondrakis (Universitat Pompeu Fabra)

Programm

  • Datum: 13.12.2016
    Zeit: 12.00 - 13.00 Uhr
    Ort: Kaulbachstr. 45, Raum HS004
    Titel: Employee mobility and contracting strategy

Abstract:

The movement of personnel between competitors has profound implications for firm performance. However, research on employee mobility to date has paid little attention to the focal firms’ multiple trading ties. We analyze data on Fortune 500 companies’ patent prosecution activities, and show that the effect of lawyer mobility between law firms on the (re-) allocation of work to these law firms is moderated by the buyer’s contracting strategy. In particular, the focal buyer gives less (more) business to the focal supplier experiencing employee departures (gains). But this impact is weakened when the buyer firm has a relationship-based contracting strategy, as manifested by high supplier reliance, stability, and capability breadth. Moreover, if we take account of buyer firms’ in-house capacity, plural-sourcing buyer firms with a relationship-based contracting strategy insource more as a result of inter-supplier employee mobility. This study contributes to our understanding of the heterogeneous effects of employee mobility by linking the social capital literature to the contracting literature central to theorizing about inter-organizational relationships.


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