Re-examining the relationship between demographic similarity and turnover: The case of top management groups.

Abstract

The previous research on the relationship between demographic similarity and organizational outcomes has been based on the similarity-attraction arguments. In this dissertation, I argue that demographic similarity (or presence of people with similar attributes in a group) is associated not only with social integration but also with competition. The discussion leads to a new model for the effect of demographic similarity on turnover. More specifically, the model posits that structural characteristics such as the absence of a strong Internal Labor Market (ILM), and individual characteristics such as age and tenure moderate the relationship between demographic similarity and turnover. Using a sample of fifty-one top management groups, I attempted to validate the proposed model in the empirical analysis. I found that, among other things, in groups without a strong ILM, or when the individuals are young or brief in tenure, age similarity was positively associated with likelihood of turnover, confirming the presence of competition effects. Tenure similarity, and main effects of tenure, however, were not found to affect the turnover process in any significant way. Implications for future research are discussed.