Organization and Strategy Seminar（2015-08）
Topic：Career mobility as a mixed signal in the market for senior managers
Speaker:Shinjae Won, Wharton School, University of Pennsylvania
Time: Friday,06 November, 13:30 – 15:00 pm
Location: Room 111, Guanghua Building 2
Abstract:
This paper explores how the prior history of mobility of candidates for senior management positions affects the likelihood of receiving a job offer. In particular, I explore the mixed signals sent by the number of previous jobs held and tenure with their current employer at the time a candidate is being considered for a senior management job with a new employer. I argue that while frequently changing employer may decrease a candidate’s attractiveness to potential employers by signaling that the candidate is a serial job hopper, it may also increase attractiveness by signaling the accumulation of a breadth of experience typically valued in top managers. Also, while potential employers may view longer tenure with a current employer as a negative signal regarding a candidate’s level of cultural flexibility and adaptability, it may also provide opportunities for upward mobility with the firm, which is a visible signal of competence. Using a unique proprietary dataset from an executive search firm from 2005-2012, I employ conditional logit models to estimate a candidate’s probability of receiving a job offer. Results suggest that the effect of prior mobility is negative, but only after controlling for diversity of functional experience, which has a positive effect on the likelihood of receiving a job offer. I also find a negative effect of tenure at the current firm on the likelihood of receiving an offer, once internal promotions are controlled for.
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