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Effects of internal and external recruitment on firm performance - an empirical analysis
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The present research examines the relationship between internal and external hiring at different job levels on firm performance. Based on reviewing existing literature I hypothesize a positive relationship between internal hiring at the top and the lower job level. A positive relationship with external hiring on firm performance is expected for the mid-job level. A cross-section study using detailed employee-employer panel data from Portugal shows that internal hiring at the top level is indeed positively and significantly related to firm performance. However, external hiring at the mid and lower job levels is negatively related tofirm performance.
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Human resource management Quantitative analysis Recruitment Job-levels