The Informational Value of Employee Online Reviews

European Journal of Operational Research (Forthcoming)

52 Pages Posted: 19 Mar 2018 Last revised: 4 Jun 2020

See all articles by Efthymia Symitsi

Efthymia Symitsi

University of Leeds - Division of Accounting and Finance

Panagiotis Stamolampros

University of Leeds - Leeds University Business School (LUBS)

George Daskalakis

affiliation not provided to SSRN

Nikolaos Korfiatis

University of East Anglia (UEA) - Norwich Business School

Date Written: April 12, 2020

Abstract

This paper investigates the informational value of online reviews posted by employees for their employer, a rather untapped source of online information from employees, using a sample of 349,550 reviews from 40,915 UK firms. We explore this novel form of electronic Word-of-Mouth (e-WOM) from different perspectives, namely: (i) its information content as a tool to identify the drivers of job satisfaction/dissatisfaction, (ii) its predictive ability on firm financial performance and (iii) its operational and managerial value. Our approach considers both the rating score as well as the review text through a probabilistic topic modeling method, providing also a roadmap to quantify and exploit employee big data analytics. The novelty of this study lies in the coupling of structured and unstructured data for deriving managerial insights through a battery of econometric, financial and operational research methodologies. Our empirical analyses reveal that employee online reviews have informational value and incremental predictability gains for a firm’s internal and external stakeholders. The results indicate that when models integrate structured and unstructured big data there are leveraged opportunities for firms and managers to enhance the informativeness of decision support systems and in turn, gain competitive advantage.

Keywords: Analytics, Employee online reviews, Topic modeling, Big data, Decision processes

JEL Classification: G01, G03, M05

Suggested Citation

Symitsi, Efthymia and Stamolampros, Panagiotis and Daskalakis, George and Korfiatis, Nikolaos, The Informational Value of Employee Online Reviews (April 12, 2020). European Journal of Operational Research (Forthcoming), Available at SSRN: https://ssrn.com/abstract=3140512 or http://dx.doi.org/10.2139/ssrn.3140512

Efthymia Symitsi

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom

Panagiotis Stamolampros

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

George Daskalakis (Contact Author)

affiliation not provided to SSRN

Nikolaos Korfiatis

University of East Anglia (UEA) - Norwich Business School ( email )

Norwich
NR4 7TJ
United Kingdom

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