Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286481 
Year of Publication: 
2023
Citation: 
[Journal:] Schmalenbach Journal of Business Research (SBUR) [ISSN:] 2366-6153 [Volume:] 75 [Issue:] 2 [Year:] 2023 [Pages:] 149-172
Publisher: 
Springer, Heidelberg
Abstract: 
Firms use job promotions to incentivize hard work from low-level employees and to sort employees according to their skills. Since these two functions are often in conflict, a firm's promotion strategy tries to balance them. Our model extends prior research by identifying job similarity between current and future job as a driver of a firm's promotion strategy. When compensation costs are high or external hiring options poor, then higher job similarity leads to fewer internal promotions. Otherwise, higher job similarity can lead to more internal promotions. These results help to explain why firms with different structures or from different industries apply different promotion strategies.
Subjects: 
Job promotion
Internal hiring
Job similarity
Labor market
Work incentives
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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