Thinking Globally, Acting Locally: Applying Internal Labor Market Theories to Firms With Multiple Branch Offices

Abstract

This study investigates the effects of organizational factors on firms' adoption and use of internal staffing strategies. In particular, we examine the different effects of firm- and branch-level factors on the adoption of internal development programs and the selection of entry-level employees. We find that firm-level factors, such as firm size and organizational prestige, are positively associated with the adoption of development programs. Branch-level factors, such as branch size and leverage ratio, are positively associated with entry-level hiring. This study offers new insight into the dynamics between different levels of organizational factors and their relationship with human resource management practices.