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Making the Most of the Revolving Door: The Impact of Outward Personnel Mobility Networks on Organizational Creativity

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  • Frédéric C. Godart

    (INSEAD, 77305 Fontainebleau, France)

  • Andrew V. Shipilov

    (INSEAD, 77305 Fontainebleau, France)

  • Kim Claes

    (INSEAD, 77305 Fontainebleau, France)

Abstract

We examine the impact of key personnel’s loss to competition on their former employers’ creative performance. Using archival data on the career histories of designers and the creative performance of their fashion houses between 2000 and 2010, we find that a house’s outward centrality in the network of personnel mobility—resulting from personnel departures—has an inverted U-shaped relationship with the house’s creative performance. This relationship is moderated by the house’s inward centrality in a network of personnel mobility stemming from hiring competitors’ employees, the tenure of its creative directors, the accomplishments of these directors, and the house’s status. Our results suggest that organizations can enhance their creativity by relying on ideas obtained through relationships with their former employees long after these employees left to work for the competition. However, this effect is contingent upon characteristics of the organization that may be associated with its capacity to absorb these ideas and its ability to signal legitimacy of the resulting output to the external audiences.

Suggested Citation

  • Frédéric C. Godart & Andrew V. Shipilov & Kim Claes, 2014. "Making the Most of the Revolving Door: The Impact of Outward Personnel Mobility Networks on Organizational Creativity," Organization Science, INFORMS, vol. 25(2), pages 377-400, April.
    • Handle: RePEc:inm:ororsc:v:25:y:2014:i:2:p:377-400
    DOI: 10.1287/orsc.2013.0839
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    8. Leone, Maria Isabella & Messeni Petruzzelli, Antonio & Natalicchio, Angelo, 2022. "Boundary spanning through external technology acquisition: The moderating role of star scientists and upstream alliances," Technovation, Elsevier, vol. 116(C).
    9. Zhang, Gupeng & Duan, Hongbo & Zhou, Jianghua, 2017. "Network stability, connectivity and innovation output," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 339-349.
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    15. BeomJu Park & Chang-Yang Lee, 2023. "Does R&D cooperation with competitors cause firms to invest in R&D more intensively? evidence from Korean manufacturing firms," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1045-1076, June.
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    17. Ithai Stern & Xin Deng & Guoli Chen & Huasheng Gao, 2021. "The “butterfly effect” in strategic human capital: Mitigating the endogeneity concern about the relationship between turnover and performance," Strategic Management Journal, Wiley Blackwell, vol. 42(13), pages 2493-2510, December.
    18. Forrest Briscoe & Michelle Rogan, 2016. "Coordinating Complex Work: Knowledge Networks, Partner Departures, and Client Relationship Performance in a Law Firm," Management Science, INFORMS, vol. 62(8), pages 2392-2411, August.
    19. Ardito, Lorenzo & Peruffo, Enzo & Natalicchio, Angelo, 2019. "The relationships between the internationalization of alliance portfolio diversity, individual incentives, and innovation ambidexterity: A microfoundational approach," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
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    21. Heeyon Kim & Bo Kyung Kim, 2022. "To be in Vogue: How mere proximity to high‐status neighbors affects aspirational pricing in the U.S. fashion industry," Strategic Management Journal, Wiley Blackwell, vol. 43(6), pages 1208-1230, June.
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