https://doi.org/10.1177/14761270241229080
Strategic Organization
1–22
© The Author(s) 2024
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DOI: 10.1177/14761270241229080
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The individual makes the difference:
How mobile personnel affects
organizational status of hiring firms
Leonard Schmidt
National Sun Yat-sen University
Thijs A Velema
National Taipei University
Shin-I Shih
National Sun Yat-sen University
Abstract
This article examines how executive mobility shapes organizational status. We propose that the status
perception of market observers is not only shaped through the lens of status distance between the source
and destination firms but also influenced by a novel lens: the mobile individuals’ career characteristics. By
testing our hypotheses with a sample of US accounting, consulting, and law firms between 2012 and 2018,
we find that hiring from a higher-status firm has a stronger positive effect on the perception of observers
when hired individuals have long tenure and interlocking directorships. Looking through the lens of career
characteristics, we explain differences in the credibility perception of mobility events and contribute to a
better understanding of the mobility–status relationship.
Keywords
board of director interlocks, human capital, interorganizational network formation, interorganizational
relations, labor markets, signaling theory, social networks, status, top management teams, topics and
perspectives
Introduction
How does hiring shape the perceived status of an organization? Status research generally argues
that organizational status derives from affiliations with other organizations (Castellucci and Ertug,
2010; Podolny, 1993). One way such affiliations develop is through the hiring of personnel from
Corresponding author:
Leonard Schmidt, Department of Business Management, National Sun Yat-sen University, No.70 Lien-hai Road,
Kaohsiung 804201, Taiwan
Email: leoschm@googlemail.com
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