Session 139

Impact of Human Capital Loss: Going Mobile

Track L

Date: Monday, October 8, 2012


Time: 16:30 – 17:45


Room: Club C

Session Chair:

  • Ingrid Fulmer, Rutgers University

Title: A Behavioral Perspective on Inventors’ Mobility: The Case of Pharmaceutical Industry


  • Francesco Di Lorenzo, Copenhagen Business School
  • Paul Almeida, Georgetown University

Abstract: Building on existing research on employee mobility, this paper investigates inventor’s motivation to move and seeks to answer the question of which inventors move. Building on behavioral and prospect theory, we aim to explore the motivational influences on individual mobility across firms in the pharmaceutical industry - specifically how performance deviations from specific reference points (aspirations) explain the likelihood of mobility (risky action). Our results suggest that when the inventor is performing above her aspiration levels (both historical and social), she is less likely to engage in mobility. For an inventor performing below her aspiration level, we found support for risk taking actions (i.e. more mobility) only for social aspiration levels. Thus mobility is most likely when inventors perform below their social aspiration levels.

Title: Effects on the Parent Firm of Employee Exit to Startups


  • Cristina Carias, Technical University of Lisbon
  • Rui Baptista, Technical University of Lisbon

Abstract: We identify and measure the effects of employee exit to startups on parent firms. Employee exit drives and/or forces the parent firm to i) increase its strategic definition; ii) face increased competition with startups; and iii) incur labor replacement costs. We analyze the effects of employee exit using quantile regression to take into account effects on differently sized parent firms. We find that exit of high level employees has less adverse effects on the parent firm than exit of medium level employees (specialized workers) for all firm sizes, and that exit of employees for firms in a different industry have less adverse effects than exit for firms in the same industry.

Title: Managing Human Capital After It Walks Out the Door: Antecedents and Consequences of Post-Exit Relationship Maintenance


  • Ingrid Fulmer, Rutgers University
  • Donald Conlon, Michigan State University
  • Matthew Call, Texas A&M University

Abstract: Scholarly attention to strategic human capital management has focused on building and retaining human capital within the organization, with less attention to what happens when valuable employees leave, and to how organizations and former colleagues influence and manage post-exit relationships with these departing employees (“DEs”). We develop a theoretical model that describes antecedents and four important outcomes of post-exit relationship maintenance: (1) knowledge transfers/social capital benefits for former colleagues of the DE, (2) knowledge transfers/social capital benefits for the former organization, (3) justice perceptions of “stayers” that affect relationship maintenance with the DE, and (4) the likelihood of “boomerang” reemployment of the DE in the future. Our model emphasizes the social mechanisms of this potentially important but neglected dimension of human capital management.

Title: The Impact of Outward Personnel Mobility Networks on Organizational Creativity


  • Frederic Godart, INSEAD
  • Andrew Shipilov, INSEAD
  • Kim Claes, INSEAD

Abstract: The loss of key personnel to competition can disrupt firms’ operations. However, firms can benefit from such a loss. This is because informal social relationships between the firms’ current and departed personnel enable information flows, attention focusing, and influence-enhancing channels that connect firms to their environment and facilitate their ability to produce creative output. A firm’s centrality in the network of outward personnel mobility resulting from personnel departures has an inverted curvilinear relationship with its creative performance. This relationship is moderated by the firm’s centrality in a network of inward personnel mobility, the firm’s status, as well as the accomplishments of its creative directors. Analyses of a dataset on the career mobility of designers across fashion houses and the houses’ creative performance support our predictions.

All Sessions in Track L...

Sun: 08:00 – 09:15
Session 133: Transitioning from Faculty to Administrator: Building Strategic Human Capital
Sun: 09:30 – 10:45
Session 134: Management Practices across Firms and Countries
Sun: 11:15 – 12:30
Session 135: Linked Employer-Employee Data and Strategic Human Capital Research
Mon: 08:00 – 09:15
Session 144: Stars and Human Capital Flows
Mon: 09:30 – 10:45
Session 140: Knowledge Management & Knowledge Structures: Who knows?
Mon: 13:30 – 14:45
Session 112: CEO and TMT Turnover: Firm Implications
Session 138: Value Creation & Appropriation: Take the money and run
Mon: 16:30 – 17:45
Session 139: Impact of Human Capital Loss: Going Mobile
Tue: 08:00 – 09:15
Session 137: CEO Human Capital: Take a Little off the Top
Tue: 11:00 – 12:15
Session 143: The Strategic Human Capital Process: A look inside the sausage factory
Tue: 14:15 – 15:30
Session 141: Impact of the Acquisition & Loss of Human Capital: Putting a new spin on things
Tue: 15:45 – 17:00
Session 145: Individual Differences & Human Capital-based Advantage: Vive la différence
Tue: 17:30 – 18:45
Session 142: Social Networks & Human Capital: Tying things together
Session 215: CEO Personality and Characteristics Influencing Decision Making

Strategic Management Society