Signaling the family firm brand in recruitment materials: The role of category-based cognitive processing on applicant attraction

Abstract

Family firms often face challenges in recruiting and attracting employees. Integrating signaling theory with the theory of reasoned action, we develop a parallel mediation model to predict how signaling the family firm brand in recruitment materials influences applicant attraction. The results of our experiment indicate that job seekers have opposing category-based beliefs about family firms: they perceive family firms to be more authentic and more innovative, but with inferior HR systems, as compared to nonfamily firms. Furthermore, we find that these perceptions influence applicant attraction in different and unexpected ways. We discuss implications for research and practice and recommend promising avenues for future inquiry.