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Turnover and Knowledge Loss: An Examination of the Differential Impact of Production Manager and Worker Turnover in Service and Manufacturing Firms

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  • Rory Eckardt
  • Bruce C. Skaggs
  • Mark Youndt

Abstract

This research examines the comparative effects of production manager and worker turnover in service and manufacturing settings. We suggest that, due to the centrality of human action in services and the ability of manufacturers to insulate the technical core, service and manufacturing companies are differentially dependent on and impacted by the loss of production manager and worker knowledge. The results from a survey of 150 service and manufacturing firms provide partial support for this notion and show that turnover impacts these organizations differently. More specifically, we find that: (1) the negative impact of production worker turnover on firm performance is greater in service settings than in manufacturing settings; and (2) the negative impact of production worker turnover on firm performance is greater than the impact of production manager turnover in service firms. In addition, our findings show that organizational capital moderates the turnover–performance relationship for production workers in service firms.

Suggested Citation

  • Rory Eckardt & Bruce C. Skaggs & Mark Youndt, 2014. "Turnover and Knowledge Loss: An Examination of the Differential Impact of Production Manager and Worker Turnover in Service and Manufacturing Firms," Journal of Management Studies, Wiley Blackwell, vol. 51(7), pages 1025-1057, November.
    • Handle: RePEc:bla:jomstd:v:51:y:2014:i:7:p:1025-1057
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    File URL: http://hdl.handle.net/10.1111/joms.12096
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    Citations

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    Cited by:

    1. Ken Moon & Prashant Loyalka & Patrick Bergemann & Joshua Cohen, 2022. "The Hidden Cost of Worker Turnover: Attributing Product Reliability to the Turnover of Factory Workers," Management Science, INFORMS, vol. 68(5), pages 3755-3767, May.
    2. Huan Zhang & Lin Sun & Qiujie Zhang, 2022. "How Workplace Social Capital Affects Turnover Intention: The Mediating Role of Job Satisfaction and Burnout," IJERPH, MDPI, vol. 19(15), pages 1-12, August.
    3. Cong Feng & Scott Fay & Kexin Xiang, 2021. "When do we need higher educated salespeople? The role of work experience," Review of Managerial Science, Springer, vol. 15(5), pages 1391-1429, July.
    4. Michele Borgia & Eugenia Nissi & Maura La Torre & Guido Ortolani, 2022. "The Relationship between Demographics and Knowledge Risk Perception of High School Teachers: Training as a Mediator," Administrative Sciences, MDPI, vol. 12(4), pages 1-13, December.
    5. Vaid, Shashank & Ahearne, Michael & Honig, Benson & Krause, Ryan, 2023. "Customer-related executive leadership turnover and firm performance: A dilemma of firm-level human resource contingencies," Journal of Business Research, Elsevier, vol. 159(C).
    6. Ken Moon & Patrick Bergemann & Daniel Brown & Andrew Chen & James Chu & Ellen A. Eisen & Gregory M. Fischer & Prashant Loyalka & Sungmin Rho & Joshua Cohen, 2023. "Manufacturing Productivity with Worker Turnover," Management Science, INFORMS, vol. 69(4), pages 1995-2015, April.
    7. He Soung Ahn & Chiho Ok, 2019. "Good enough to move? Window-dressing performance impending turnover in inter-organizational mobility," Review of Managerial Science, Springer, vol. 13(2), pages 397-416, April.
    8. Yaa Akosa Antwi & John R. Bowblis, 2018. "The Impact of Nurse Turnover on Quality of Care and Mortality in Nursing Homes: Evidence from the Great Recession," American Journal of Health Economics, University of Chicago Press, vol. 4(2), pages 131-163, Spring.
    9. Bauer, Florian & Schriber, Svante & Degischer, Daniel & King, David R., 2018. "Contextualizing speed and cross-border acquisition performance: Labor market flexibility and efficiency effects," Journal of World Business, Elsevier, vol. 53(2), pages 290-301.
    10. Zięba Małgorzata, 2017. "Knowledge Safety – Insights from the SME Sector," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(3), pages 78-96, September.

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