Former Employer’s Prestige, the TMT’s Post-Migration Rewards in the Biopharma Industry

Tariq H. Malik and Chunhui Huo

SAGE Open, 2021, vol. 11, issue 2, 21582440211008884

Abstract: Recruiters and researchers of TMT (top management teams) tend to emphasize the human capital and social capital of the executive in the interfirm migration, but they ignore the role of the former employer’s prestige. We address this issue to argue that the former employer’s organizational prestige attracts the recruiter’s attention to the TMT, and we propose that the TMT from high-prestige organization attracts high rewards than the TMT from a low-prestige organization. We used data from the biotechnology sector on 1,468 TMTs, their 1,482 hiring events, 783 recruiters, 168 source employers—in the interfirm movement of the TMTs from 1997 to 2005. We used three measures for predictors of the organizational prestige of the former employer, and the regression analysis shows some reflections of those predictors of rewards of the hired executive. The result shows that the organizational age, size, and alliance network of the former employer emit value signals to the recruiter. These components of organizational prestige predict increase in the rewards after controlling for the human capital of the TMT. The study contributes to organizational context as a predictor of value, institutional theory, and general implications for practice and policy.

Keywords: interfirm TMT recruitment; TMT migration from the incumbent to small and medium enterprises; former employer’s prestige; post-migration executive rewards; institutional theory; biopharmaceutical industry (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/21582440211008884 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:11:y:2021:i:2:p:21582440211008884

DOI: 10.1177/21582440211008884

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().