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More stars stay, but the brightest ones still leave: Job hopping in the shadow of patent enforcement
Author(s) -
Ganco Martin,
Ziedonis Rosemarie H.,
Agarwal Rajshree
Publication year - 2015
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2239
Subject(s) - shadow (psychology) , reputation , enforcement , business , industrial organization , labour economics , economics , law , psychology , political science , psychotherapist
Competitive advantage often rests on the skills and expertise of individuals who may leave for rival organizations. Although institutional factors like non‐compete regimes shape intra‐industry mobility patterns, far less is known about firm‐specific reputations built through patent enforcement. This study formally models and empirically tests how a firm's prior litigiousness over patents (i.e., its reputation for IP toughness) influences employee mobility. Based on inventor data from the U.S . semiconductor industry, we find that litigiousness not only diminishes the proclivity of inventive workers to “job hop” to others in the industry, it also shifts the distribution of talent released to the market. The study contributes new insights linking firm‐level reputations as tough legal enforcers to the “stay versus exit” calculus of knowledge workers . Copyright © 2014 John Wiley & Sons, Ltd.