The Survival of Unique Corporate Cultures

22 Pages Posted: 25 Apr 2016

See all articles by Gil S. Epstein

Gil S. Epstein

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics; University College London - CReAM - Centre for Research and Analysis of Migration

Renana Lindner Pomerantz

Bar-Ilan University

Abstract

In this paper we identify two situations that can lead a firm to hire an executive who supports a corporate culture that differs from the firm's current culture. In the first case, there is similarity between the firm's culture and that of the candidate and in the second case, executives who support the firm's culture constitute a minority of available candidates. In both cases the firm prefers to hire an available candidate, rather than risk a prolonged vacancy. We show how these scenarios can lead to the eradication of unique cultures and to the perpetuation of more common cultures.

Keywords: corporate culture, organizations, minority

JEL Classification: D21, D23

Suggested Citation

Epstein, Gil S. and Lindner Pomerantz, Renana, The Survival of Unique Corporate Cultures. IZA Discussion Paper No. 9873. Available at SSRN: https://ssrn.com/abstract=2769181

Gil S. Epstein (Contact Author)

Bar-Ilan University - Department of Economics ( email )

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HOME PAGE: http://faculty.biu.ac.il/~epsteig/

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Renana Lindner Pomerantz

Bar-Ilan University

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