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The Survival of Unique Corporate Cultures

Author

Listed:
  • Epstein, Gil S.

    (Bar-Ilan University)

  • Lindner Pomerantz, Renana

    (Bar-Ilan University)

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 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 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.

Suggested Citation

  • Epstein, Gil S. & Lindner Pomerantz, Renana, 2016. "The Survival of Unique Corporate Cultures," IZA Discussion Papers 9873, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9873
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    References listed on IDEAS

    as
    1. Gil S Epstein, 2012. "Employer’s information and promotion-seeking activities," Economics and Business Letters, Oviedo University Press, vol. 1(4), pages 21-32.
    2. Eric Van den Steen, 2010. "Culture Clash: The Costs and Benefits of Homogeneity," Management Science, INFORMS, vol. 56(10), pages 1718-1738, October.
    3. Schein, Edgar H., 1983. "The role of the founder in the creation of organizational culture," Working papers 1407-83., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    4. Epstein, Gil S., 2012. "Employer's Information and Promotion-Seeking Activities," IZA Discussion Papers 7023, Institute of Labor Economics (IZA).
    5. Gil S. Epstein & Renana Lindner Pomerantz, 2013. "Assimilation through Marriage," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 191-203, May.
    6. Furtado Delia & Theodoropoulos Nikolaos, 2010. "Why Does Intermarriage Increase Immigrant Employment? The Role of Networks," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-33, November.
    7. Eric Van den Steen, 2005. "Organizational Beliefs and Managerial Vision," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 21(1), pages 256-283, April.
    8. Delia Furtado & Nikolaos Theodoropoulos, 2009. "I'll marry you if you get me a job: Marital assimilation and immigrant employment rates," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 116-126, March.
    9. Yaakov Weber & Oded Shenkar & Adi Raveh, 1996. "National and Corporate Cultural Fit in Mergers/Acquisitions: An Exploratory Study," Management Science, INFORMS, vol. 42(8), pages 1215-1227, August.
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    More about this item

    Keywords

    corporate culture; organizations; minority;
    All these keywords.

    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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