Voluntary Turnover, Social Capital, and Organizational Performance

We propose a supplemental perspective, based on organizational social capital, for examining the voluntary turnover-organizational performance relationship. We view existing organizational-level theories as those focusing on cost or human capital issues or, rarely, on a balance among these factors. But rapid changes in the nature of work, organizational structures, and interorganizational competitiveness increase the importance of studying the role of social capital in the voluntary turnover-organizational performance relationship. We highlight areas of correspondence and divergence among the various perspectives, discuss implications for various performance measures, and outline several research directions.

[1]  D. R. Dalton,et al.  Turnover turned over: an expanded and positive perspective. , 1979, Academy of management review. Academy of Management.

[2]  Steven W. Floyd,et al.  Building Strategy from the Middle: Reconceptualizing Strategy Process , 2000 .

[3]  Jeffrey H. Dyer,et al.  The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage , 1998 .

[4]  D. R. Dalton,et al.  Functional Turnover: An Empirical Assessment. , 1981 .

[5]  W. Powell,et al.  The iron cage revisited institutional isomorphism and collective rationality in organizational fields , 1983 .

[6]  E. Ziegel,et al.  The Balanced Scorecard , 1998 .

[7]  M. Abelson,et al.  Optimal and dysfunctional turnover: toward an organizational level model. , 1984, Academy of management review. Academy of Management.

[8]  Marc H. Meyer,et al.  Product development for services , 1999 .

[9]  Keith G. Provan,et al.  Embeddedness, Interdependence, and Opportunism in Organizational Supplier-Buyer Networks , 1993 .

[10]  David Krackhardt,et al.  The snowball effect: Turnover embedded in communication networks. , 1986 .

[11]  I. Nonaka,et al.  The Knowledge Creating Company , 2008 .

[12]  L. Argote.  Organizational Learning: Creating, Retaining and Transferring Knowledge , 1999 .

[13]  Dan R. Dalton,et al.  Turnover: A Lucrative Hard Dollar Phenomenon , 1982 .

[14]  J. Coleman.  Foundations of Social Theory , 1990 .

[15]  S. Lippman,et al.  Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition , 1982 .

[16]  J. Coleman,et al.  Social Capital in the Creation of Human Capital , 1988, American Journal of Sociology.

[17]  C. Prahalad,et al.  The Core Competence of the Corporation , 1990 .

[18]  R. Darmon.  Identifying Sources of Turnover Costs: A Segmental Approach , 1990 .

[19]  J. Barney,et al.  Organizational Culture: Can It Be a Source of Sustained Competitive Advantage? , 1986 .

[20]  R Kelley,et al.  How Bell Labs creates star performers. , 1993, Harvard business review.

[21]  Carrie R. Leana,et al.  Organizational Social Capital and Employment Practices , 1999 .

[22]  S. Ghoshal,et al.  Social Capital, Intellectual Capital, and the Organizational Advantage , 1998 .

[23]  Elizabeth Chambers,et al.  The war for talent , 2001, Tijdschrift voor HRM.

[24]  B. Gerhart,et al.  The Impact of Human Resource Management on Organizational Performance: Progress and Prospects , 1996 .

[25]  James D. Thompson.  Organizations in Action , 1967 .

[26]  Peter Cappelli,et al.  A Market-Driven Approach to Retaining Talent. , 2000 .

[27]  J. Kasarda.  Effects of Personnel Turnover, Employee Qualifications, and Professional Staff Ratios on Administrative Intensity and Overhead , 1973 .

[28]  M. Strober.  Human Capital Theory: Implications for HR Managers , 1990 .

[29]  David J. Miller,et al.  The Resource-Based View of the Firm in Two Environments: The Hollywood Film Studios From 1936 to 1965 , 1996 .

[30]  J. Alexander,et al.  Nursing Turnover and Hospital Efficiency: An Organization Level Analysis , 1991 .

[31]  Allen M. Weiss,et al.  Investment in technological innovations: An option pricing approach , 1997 .

[32]  D. Wegner.  Transactive Memory: A Contemporary Analysis of the Group Mind , 1987 .

[33]  John E. Delery,et al.  An organization-level analysis of voluntary and involuntary turnover. , 1998 .

[34]  G. Becker,et al.  Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition , 1993 .

[35]  M. Rosenberg,et al.  The Logic of Survey Analysis. , 1968 .

[36]  Peter F. Drucker,et al.  The Future That Has Already Happened , 1997 .

[37]  R. Katz.  The Effects of Group Longevity on Project Communication and Performance. , 1982 .

[38]  Jeffrey H. Dyer.  Specialized supplier networks as a source of competitive advantage : Evidence from the auto industry , 1996 .

[39]  H. L. Smith,et al.  Managing manpower turnover costs. , 1978, The Personnel administrator.

[40]  Mary E. Graham,et al.  New Directions in Compensation Research: Synergies, Risk, and Survival , 1995 .

[41]  S. Ghoshal,et al.  Social Capital and Value Creation: The Role of Intrafirm Networks , 1998 .

[42]  P. Hom.  Employee Turnover , 1994 .

[43]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[44]  P. Evans,et al.  Strategy and the new economics of information. , 1997, Harvard business review.

[45]  B. Schneider.  THE PEOPLE MAKE THE PLACE , 1987 .

[46]  R. Burt.  The contingent value of social capital. , 1997 .

[47]  Margaret A. Peteraf.  The cornerstones of competitive advantage: A resource‐based view , 1993 .

[48]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[49]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[50]  Steven W. Floyd,et al.  Strategic process effects on consensus , 1989 .

[51]  K. Weick.  The social psychology of organizing , 1969 .

[52]  James C. Franklin,et al.  Industry output and employment projections to 2006. , 1995 .