The Impact of Word of Mouth on Organizational Attractiveness

Abstract

Many organizations have attempted to determine the most effective communication channel between organizations and potential applicants. The present study attempts to identify if word of mouth (WOM) influences organizational attractiveness by having 240 MBA students take part in a scenario experimental design. In addition, it also aims to test the moderating effect of tie strength and expertise. The study is implemented with a scenario experiment addressing the issue of employment decision making. The subjects were asked to read scenarios and imagine that they were experiencing them. Subsequently, they filled out the questionnaires of organizational attractiveness. The results indicate that word of mouth has a significant impact on organizational attractiveness. The moderating effects of potential applicants' tie strength with senders and expertise of senders are also supported. In practice, the study indicates the effect of word of mouth on organizational attractiveness, suggesting that organizations should put more effort into improving positive organizational word of mouth. Theoretically, it demonstrates the effect of positive word of mouth and the moderating effect of tie strength with senders and expertise of senders on organizational attractiveness.