Interfirm Competition for Human Resources: Evidence From the Software Industry

Abstract

To test a model of interfirm competition for human resources, firms' responses to the loss of employees to single rivals were examined. Results suggest that attributes of hiring firms and of hired employees are associated with target firms' decisions to defend and retaliate against labor market rivals. The findings have implications for the validation of intrafirm differences in human resource systems. This study opens the door for further theorizing and modeling of interfirm competition for intangible resources.