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The Survival of Unique Corporate Cultures

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  • Gil S. Epstein
  • Renana Lindner‐Pomerantz

Abstract

In this paper we identify two situations that can lead a firm to hire an executive who supports a corporate culture that differs from the firm's current culture. In the first case, there is a similarity between the firm's culture and that of the candidate, and in the second case, executives who support the firm's culture constitute a minority of the available candidates. In both cases the firm prefers to hire an available candidate, rather than risk a prolonged vacancy. We show how these scenarios can lead to the eradication of unique cultures and to the perpetuation of more common cultures. Copyright © 2016 John Wiley & Sons, Ltd.

Suggested Citation

  • Gil S. Epstein & Renana Lindner‐Pomerantz, 2017. "The Survival of Unique Corporate Cultures," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(4), pages 622-629, June.
    • Handle: RePEc:wly:mgtdec:v:38:y:2017:i:4:p:622-629
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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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