We explore how business groups use internal labour markets (ILMs) in response to changing eco- nomic conditions. We show that following the exit of a large industry competitor, group-affiliated firms expand, and gain market share by increasing their reliance on the ILM to ensure swift hiring, especially of technical managers and skilled blue collar workers. The ability to take advantage of this shock to growth opportunities is greater in firms with closer access to their affiliates\u2019 human capital, as geographical prox- imity facilitates employee relocations across units. Overall, our findings point to the ILM as a prominent mechanism making affiliation with a business group valuable at times of change. For the ILM to perform its role in the face of industry shocks, group sectoral diversification must be combined with geographical proximity between affiliates.<\/p>","protected":false},"excerpt":{"rendered":"
We explore how business groups use internal labour markets (ILMs) in response to changing eco- nomic conditions. We show that following the exit of a large industry competitor, group-affiliated firms expand, and gain market share by increasing their reliance on the ILM to ensure swift hiring, especially of technical managers and skilled blue collar workers. […]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false},"thematique":[102],"type-de-publication":[],"class_list":["post-443","publication","type-publication","status-publish","hentry","thematique-labor-market"],"acf":[],"yoast_head":"\n