Chapter 9: Competitive Consequences of Routine Spillovers Due to Inter-firm Mobility
9. Competitive consequences of routine spillovers due to inter-ﬁrm mobility INTRODUCTION The recruitment, development and retention of employees are central factors for organizational survival. While the focus on people as a source of superior performance is hardly new (for example, Penrose, 1959; Pfeﬀer, 1994; Grant, 1996), the importance of people has recently become even more salient on the grounds that a ﬁrm’s stock of routines is enacted by its members (Cyert and March, 1963; Nelson and Winter, 1982; Coﬀ, 1997). Not surprisingly, recruiting individuals from rival organizations has been increasingly used to access resources and routines not available in-house (see Rao and Drazin, 2002). Likewise, ﬁrms attempt to limit outbound movement of members to competing ﬁrms (see for example, Coﬀ, 1997). Much of the theory and research to date has focused on the antecedents of turnover with general inquiries on voluntary turnover (for a review see, for example, Williams and O’Reilly III, 1998). Inquiries on possible turnover consequences have revolved around the impact of the transferring member’s performance (Harris and Helfat, 1997; Huckman and Pisano, 2006). Another subset of research studies has examined cases of turnover limited to inter-ﬁrm mobility, and their consequences for the source ﬁrm (Sørensen, 1999b), the destination ﬁrm (Agarwal et al., 2004; Rao and Drazin, 2002; Wezel and Saka, 2006), or both the source and destination ﬁrms (Phillips, 2002). Evidence suggests that spin-oﬀs are speedier than de novo ﬁrms in mobilizing resources (Ruef, 2005), and tend to replicate or modify an...
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