Are All Spillovers Created Equal? A Network Perspective on IT Labor Movements

35 Pages Posted: 22 Nov 2014 Last revised: 1 Mar 2015

Lynn Wu

University of Pennsylvania - The Wharton School

Fujie Jin

Kelley School of Business, Indiana University; University of Pennsylvania - Operations & Information Management Department

Lorin M. Hitt

University of Pennsylvania - Operations & Information Management Department

Date Written: February 28, 2015

Abstract

This study examines how characteristics of a firm’s labor-flow network affect firm productivity. Using employee job histories, we construct inter-firm labor-flow networks for both IT-labor and non-IT labor and analyze how a firm’s network structure for the two types of labor affects firm performance. We find that hiring IT workers from a structurally-diverse network of firms can substantially improve firm productivity, which is likely due to the novel and non-redundant information provided in such networks. Interestingly, we find the opposite effects for hiring non-IT labor, which is likely due to a structurally- cohesive network enabling frequent and repeated exposure to a common knowledge base that is beneficial for implementing complementary organizational practices especially when they are often complex and tacit. Together, these results demonstrate the importance of incorporating a network perspective in understanding the full impact of spillover effects from organizational hiring activities.

Keywords: Hiring Network, Productivity, Spillover, HR Analytics, Information Worker, Firm Productivity

Suggested Citation

Wu, Lynn and Jin, Fujie and Hitt, Lorin M., Are All Spillovers Created Equal? A Network Perspective on IT Labor Movements (February 28, 2015). Available at SSRN: https://ssrn.com/abstract=2528762 or http://dx.doi.org/10.2139/ssrn.2528762

Lynn Wu (Contact Author)

University of Pennsylvania - The Wharton School ( email )

3733 Spruce Street
Philadelphia, PA 19104-6374
United States

Fujie Jin

University of Pennsylvania - Operations & Information Management Department ( email )

Philadelphia, PA 19104
United States

Kelley School of Business, Indiana University ( email )

Business 670
1309 E. Tenth Street
Bloomington, IN 47401
United States
812-855-0943 (Phone)

HOME PAGE: http://https://kelley.iu.edu/facultyglobal/directory/FacultyProfile.cfm?netID=jinf

Lorin M. Hitt

University of Pennsylvania - Operations & Information Management Department ( email )

571 Jon M. Huntsman Hall
Philadelphia, PA 19104
United States
215-898-7730 (Phone)
215-898-3664 (Fax)

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