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Summary
Scholars have suggested that a firm's reputation can provide it with a competitive advantage by attracting more, and possibly higher-caliber, applicants. No research has actually investigated this relationship, however, in large part because researchers have not assessed applicant pool characteristics but instead have measured applicants' intentions. Therefore, we conducted two studies to investigate whether organizational reputation influenced the number and the quality of applicants actually seeking positions with firms. Company reputation was operationalized using two different published reputation measures, and applicant quality data were obtained from career services offices at business schools at two universities. Results from both studies supported the previously untested belief that firms with better reputations attract more applicants. Furthermore, some evidence suggested that firms with better reputations could select higher-quality applicants. Copyright # 2003 John Wiley & Sons, Ltd.
Introduction
Evidence is beginning to accumulate that firms' human resource practices affect organizational performance (Becker, Huselid, & Ulrich, 2001; Delery & Shaw, 2001; Huselid, 1995; Lado & Wilson, 1994; Pfeffer, 1998). As noted by Taylor and Collins (2000), recruitment is one of the most important elements of human resource management because it influences applicant pool characteristics and thus defines the set of individuals who will be influenced by all subsequent human resource practices. Organizations that attract more qualified applicants obtain greater utility in their selection systems and a potential competitive advantage (Highhouse et al., 1999; Jackson & Schuler, 1990; Lado & Wilson, 1994; Leonard, 1999; Murphy, 1986; Rynes, 1991). Perhaps not surprisingly, organizations are realizing the importance of attracting top-quality applicants for organizational success and are thus devoting more resources toward recruitment efforts (Leonard, 1999). Similarly, organizational scholars also have devoted more effort toward understanding recruitment efforts, as indicated by several recent reviews of the literature (Breaugh & Starke, 2000; Cable & Turban, 2001; Highhouse & Hoffman, 2001; Rynes & Cable, 2003).
Scholars have suggested that a firm's reputation, defined as the public evaluation of a firm relative to other firms, should influence its success in attracting quality applicants (Cable & Turban, 2001; Fombrun, 1996; Fombrun & Shanley, 1990). In fact, some research suggests that job seekers' decisions to pursue jobs with organizations are based largely on their overall perceptions of organizational reputation (Belt & Paolillo, 1982; Gatewood, Gowan, &...