Labor pains: change in organizational models and employee turnover in young, high-tech firms

Baron, J.N.; Hannan, M.T.; Burton, M.D.

doi:10.1086/320296

Labor pains: change in organizational models and employee turnover in young, high-tech firms

Baron, J.N.; Hannan, M.T.; Burton, M.D.

Authors

J.N. Baron

M.T. Hannan

M.D. Burton

Abstract

Organizational theories, especially ecological perspectives, emphasize the disruptive effects of change. However, the mechanisms producing these effects are seldom examined explicitly. This article examines one such mechanismemployee turnover. Analyzing a sample of high-technology start-ups, we show that changes in the employment models or blueprints embraced by organizational leaders increase turnover, which in turn adversely affects subsequent organizational performance. Turnover associated with organizational change appears to be concentrated among the most senior employees, suggesting "old guard disenchantment" as the primary cause. The results are consistent with the claim of neoinstitutionalist scholars that founders impose cultural blueprints on nascent organizations and with the claim of organizational ecologists that altering such blueprints is disruptive and destabilizing.

Citation

Baron, J., Hannan, M., & Burton, M. (2001). Labor pains: change in organizational models and employee turnover in young, high-tech firms. American Journal of Sociology, 106(4), 960-1012. https://doi.org/10.1086/320296

Journal Article Type	Article
Publication Date	2001-01
Deposit Date	Jun 23, 2008
Publicly Available Date	Jun 23, 2008
Journal	American Journal of Sociology
Print ISSN	0002-9602
Publisher	The University of Chicago Press
Peer Reviewed	Peer Reviewed
Volume	106
Issue	4
Pages	960-1012
DOI	https://doi.org/10.1086/320296
Publisher URL	http://www.journals.uchicago.edu/AJS/journal/issues/v106n4/040306/brief/040306.abstract.html