The influence of organizational context on the managerial turnover–performance relationshi

Elena Revilla, Beatriz Rodriguez-Prado and Cristina Simón

MPRA Paper from University Library of Munich, Germany

Abstract: This study performs a comprehensive examination of organizational context in the relationship between managerial turnover and organizational performance. Using theoretical frameworks of human and social capital, we focus on the moderating roles of entity size, employment system, industry brand, and location. To test our hypotheses, we worked with the company records of a multinational fashion retail group with more than 4,000 stores grouped into eight different brands and 100,000 employees in more than 31 countries. To estimate the causal contextual effects of the relationship between voluntary managerial turnover and organizational performance, we designed a quasi-experiment using propensity score matching analysis. Our results show that the dysfunctional side of managerial turnover is significant for stores that are large, for stores managed under a primary employment system, for brands operating with higher levels of service orientation, and for countries with more restrictive employment protection legislation. We discuss the implications of these findings for practice and for future research.

Keywords: contextual moderators; managerial turnover; propensity score matching; unit performance (search for similar items in EconPapers)
JEL-codes: L2 L81 M1 M12 (search for similar items in EconPapers)
Date: 2019-02-23, Revised 2019-10-16
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Published in Ecological Economics 59 (2020): pp. 423-443

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:123057

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