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JOURNAL OF MANAGERIAL ISSUES Vol. XXVI Number 1 Spring 2014

The Advantages of High-Prestige MBA Degrees and Placement Centers for Compensation Growth

of African Americans

Brooks C. Holtom Associate Professor of Management

Georgetown University

Edward J. Inderrieden Associate Professor of Management

Marquette University

David A. Kravitz Professor of Management

George Mason University

In an era of rapidly rising tuition, increasing student-loan debt, and proliferating alternative delivery models, questions are being raised about the value of traditional university education (Khurana, 2010) and the value of the MBA in particular (Pfeffer and Fong, 2002; Mintzberg, 2004; Datar et al., 2010). Moreover, funds garnered through tuition increases are improving neither faculty pay nor professor-to-student ratios, but rather are being invested in a dramatic increase in administrative programs and personnel (Holtom and Porter, 2013). This raises the question of whether these investments are delivering tangible results. One such result would be an increase in opportunities for growth and advancement for minorities. The present research falls at the nexus of these broader issues.

The purpose of this research is to explore race differences in the compensation growth of white and black GMAT-exam registrants as a function of whether they completed an MBA, whether the MBA was from a Top 25 program, and whether they used placement-center services in their MBA program.

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In the following pages, the literature on career development and salary growth as well as the literature regarding formal and informal recruitment sources is reviewed. Grounded in these literatures, hypotheses are advanced. Next, a large-scale, longitudinal study is used to carefully examine the effects for whites and blacks of earning a high-prestige MBA and using MBA placement centers. Finally, practical implications of the findings are discussed.

THEORETICAL DEVELOPMENT

Gaining a greater understanding of the predictors underlying economic success of

racial minorities in the U.S is important. The presence of racial minorities in professional and managerial positions is growing (U.S. Bureau of Labor Statistics, 2012), and some people have taken this progress as evidence that explicit racial barriers have been removed (Rosette et al., 2008). Although predictors of career success such as income have garnered considerable attention over the past twenty years and numerous models have been proposed (see Ng et al., 2005), few studies have directly investigated the existence of racial differences in the determinants of compensation growth for diverse professionals.

High-Prestige MBA and Compensation Growth

There are two complementary perspectives regarding how the investment in an MBA might increase compensation for recipients generally and minorities in particular. The first is human capital theory and the second is signaling theory.

Researchers define human capital as the stock of competencies, knowledge, social and personality attributes, and cognitive abilities that enable individuals to perform labor that produces economic value. Investments in human capital such as education that expand knowledge or skills have been demonstrated to enhance an individual’s earning power (Judge et al., 1995). An underlying assumption of most work examining human capital is that the predictors of economic success are the same for all professionals (Becker, 1975). However, while many investigate gender differences in pay (Goldberg et al., 2004; Blau and Kahn, 2007), few have directly investigated the existence of racial differences in the determinants of compensation growth for professionals possessing advanced degrees in management.

Managerial and professional work is characterized as a collection of non- programmable tasks. Thus, predicting who will be successful is difficult. This is in part true because in the context of the principal-agent relationship, an individual (the agent) possesses more knowledge about her capabilities than the principal (the organization), leading to information asymmetry (Eisenhardt, 1988). Under these conditions, an organization may either be unwilling to hire the individual because of the uncertainty surrounding performance potential or will offer a lower starting compensation. This can have long-term ramifications, because starting salaries are strongly related to future earnings (Oyer, 2008). Signaling theory, as developed by Spence (2002), provides a helpful framework to explore the impact of information asymmetries on the recruitment and selection process. When quality or capability is not obvious, an attribute or characteristic (a signal) is needed to convey that information. To be credible, the signal must clearly imply quality or capability (Bergh and Gibbons, 2011).

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Considerable attention has been directed toward the employment of minorities. In addition to attracting and hiring minority candidates, retention has become an important issue, as minorities are seen as more likely to leave (Griffeth and Hom, 2001). McKay et al. (2007) report that voluntary turnover among racial minorities is 30% higher than for whites.

To overcome some of these challenges, organizations must obtain information that signals whether a potential job candidate possesses the skills and abilities needed to succeed in the organization, as well as sufficient fit with the job and culture such that they are likely to remain with the firm. Traditional formal recruitment methods, such as newspaper advertising and Internet sites, may help to increase the pool of recruits, but organizations need additional information to make a good choice (Rynes and Barber, 1990). Targeting qualified individuals during recruitment can improve an organization’s chances for a successful hire. Using educational attainment as a signal of individual competency is one approach to targeted formal recruitment (Breaugh and Starke, 2000; Newman and Lyon, 2009). Educational attainment serves as a potential indicator of both competency and interest. Investing in an MBA has become a popular approach for career improvement. Indeed, there has been significant growth in the number of MBA degrees awarded (Schoenfeld, 2006). However, as programs proliferate, the MBA degree in and of itself may not provide sufficient information to an employer regarding an individual’s ability. Thus, signaling theory suggests that the impact of procuring an MBA on career success may be affected by attributes of the MBA program that signal program quality.

The quality of education for minority students is often questioned (Farkas, 1996; Tomaskovic-Devey and Skaggs, 1999). Consequently, additional information, such as rankings of MBA programs, can serve as a differentiating factor. Attendance at a top- ranked MBA program serves as a signal of quality (Gioia and Corley, 2002). Graduating from a highly ranked program may have an even greater effect on earnings for blacks than for whites because a signal of program quality is particularly important for them. Program rankings are a measure of prestige that can be used to reduce the cost of acquiring and verifying information for students and recruiters (Safón, 2007). Schools with high rankings attract and admit students with higher GPAs and standardized test scores (U.S. News, 2012). Highly ranked schools also attract employers that pay employees more in general (Gloeckler, 2011).

In sum, completion of an MBA program should increase the student’s human capital and thus his or her professional success and subsequent compensation increments. In addition, receipt of an MBA degree signals that the student has high ability and motivation, with this signal being especially strong if the degree is from a top program. Finally, the signaling effect of MBA receipt and especially for MBA program quality should be larger for black than white students. On the basis of this logic, the following hypothesis is proposed.

Hypothesis 1: Receipt of an MBA from a highly ranked program will be more

strongly and positively related to compensation growth among blacks than among whites.

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Placement Centers and Compensation Growth

Organizations rely heavily on referrals for recruiting new employees. Estimates suggest that 50 percent or more of the jobs in the U. S. are obtained through friends and relatives (DiTomaso, 2013; Granovetter, 1995), indicating that current employees have significant input in determining who gets hired (Tomaskovic-Devey and Skaggs, 1999). This approach to staffing may disadvantage racial minorities due to deficiencies in their professional networks (Doverspike et al., 2000; Petersen et al., 2000).

The importance of job search methods on the hiring process and earnings is well recognized (Huffman and Torres, 2001). The choice of activities job seekers engage in largely determine the usefulness of information that they receive and, ultimately, the type of jobs from which they can choose (Barber et al., 1994). Recruiting source becomes an even greater issue when considering entry-level management positions. Research on jobs requiring a college degree found that relying on employee referrals significantly decreased the likelihood that minorities would be hired (Braddock and McPartland, 1987). Research has shown that the use of formal recruiting services by women tends to expand their opportunities beyond female dominated jobs and reduce pay differentials (Drentea, 1998).

As noted by Saks (2006), while some research indicates that the use of informal sources results in better job opportunities and higher salaries (Granovetter, 1995), other work shows that college graduates utilizing formal sources were able to secure higher paying jobs that were more directly related to their training (Allen and Keaveny, 1980) and perceived greater job and organization fit (Saks and Ashforth, 1997). The importance of utilizing formal recruitment channels, such as placement centers, is complemented by research indicating that minority job candidates often negotiate lower starting salaries than majority members (Valley et al., 1998), due in part to racial minorities’ lack of social ties in the organization (Seidel et al., 2000).

Minority recruitment has received more attention in recent years due to firms’ desire to gain access to minority consumers or avoid legal scrutiny as well as to a need to be seen as a fair employer (McKay and Avery, 2005). Indeed, compelling arguments for positive financial effects of effective diversity strategies have been advanced (Thomas, 2004; McKay et al., 2009). At the same time, McKay and Avery (2005) note that minority recruits often do not receive accurate information during the recruiting process and subsequently experience discrimination at work. This discrimination may be manifest in the form of pay inequity, unfair promotion practices, and exclusion from developmental networks (McKay and Avery, 2005). The downstream consequences for firms are quite negative and include higher absenteeism (Avery et al., 2007) and turnover (McKay et al., 2007). In short, when recruits have poor information about organizations and experience poor fit, the result is likely to be negative. In particular, this may result in blacks receiving lower salaries.

Thus, a key question is how to ensure appropriate matching of employee with employer, particularly for black employees. Career placement centers can serve a vital role as brokers. The problem of information asymmetry is reduced because placement centers have information on both recruiters and job candidates. Given the reciprocal dependency that exists between recruiters and placement centers, minority candidates who utilize the placement centers are more likely to receive accurate information regarding job opportunities and compensation and are likely to be steered away from

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HOLTOM, INDERRIEDEN, AND KRAVITZ

firms with poor records of minority treatment and retention. Similarly, firms may not be given resumes of minority candidates who do not fit their needs or will not fit in their cultures.

The placement center serves to bring together individuals who might not normally have a connection. Blacks can benefit from using this service even if it does not lead directly to a job offer. According to signaling theory, information received from the placement center helps individuals ascertain whether a job opportunity is appropriate for them and if the compensation offer is competitive. Note that this advantage may even accrue to their current position, if information provided by the placement service enables them to accurately judge the quality of their benefits and request reasonable raises if they are undercompensated. Thus, the use of formal recruitment services like placement centers will be positively related to compensation growth for blacks. Because whites have stronger informal social networks, the benefit of using career placement services will likely be smaller for them. Based on the preceding discussion, the following hypothesis is offered.

Hypothesis 2: Use of career placement services will be more strongly related to

compensation growth among blacks than whites.

METHOD

Sample and Participants

The data for this study were taken from a longitudinal survey sponsored by the Graduate Management Admission Council (GMAC) and carried out by Battelle Memorial Institute. As noted by Dugan et al., the survey was “designed to provide information about the decisions and actions of test registrants as they progress through or drop out of the graduate management education pipeline” (1994: 8). Four waves of data were collected, commencing in 1990 and ending in 1998. A stratified random sample of 7,006 test takers was extracted from over 200,000 individuals who took the GMAT in 1990. It oversampled blacks in order to provide sufficient statistical power to detect differences. To achieve a high response rate and reduce the problem of non- response bias, the Total Design Method (TDM) developed by Dillman (1978) was employed. This paper focuses on information provided in Wave I (1990) and Wave IV (1998). This period was chosen to maximize the time available for respondents to complete their MBA and experience compensation growth. The response rate for the study averaged approximately 85 percent for each wave, resulting in a final sample of 3,769 individuals for Wave IV and an overall response rate of 54 percent. Given the focus of this research, the sample contained the 1,097 respondents (181 blacks and 916 whites) who were working in both 1990 and 1998.

Of the participants in the final sample, 60% were male, 73% were married, and 47% had completed an MBA degree. As of 1998, the average respondent had approximately ten years of full-time work experience and worked about 47 hours per week. Approximately half the sample had undergraduate degrees in business administration, while 22% had engineering degrees, 23% had degrees in the social sciences and education, and the remaining five percent had physical science degrees. Additional detail about the measures collected on the survey is provided below.

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Dependent Variable

Final compensation. Compensation for 1998 was assessed by asking respondents to report their total compensation for their present job during the year of the survey. Total compensation included annual salary, bonuses, and incentive payments. Previous research indicates that self-reported income correlates highly with company records (Judge et al., 1995). To adjust for inflation, 1998 compensation was converted into 1990 dollars using the Consumer Price Index. Control Variables

To examine the incremental impact of the study variables on compensation growth, it is necessary to control for the effects of compensation earned at the beginning of the study. Thus, compensation in 1990, measured as in 1998, was entered as a control variable. Earlier studies on compensation differences indicate the clear importance of considering gender, age, and organization tenure. The existence of a gender pay gap is well established (e.g., Blau and Kahn, 2007), so gender effects must be accounted for when studying compensation. Gender was measured with an item collected in Wave I in 1990 and was coded 0 = female, 1 = male. Previous research has found that earnings are related to age (e.g., Goldberg et al., 2004) and organization tenure (e.g., Brett and Stroh, 1997). Stanley and Jarrell (1998) indicate that omitting age or work experience may result in bias, because they make a material difference in compensation equations. In the present data set, however, age correlated 0.76 with work experience, so age was omitted to avoid potential problems with multicollinearity. The inclusion of work experience is assumed to eliminate the potential problems with omission of age. Finally, tenure was measured as number of years the respondent worked in his or her current organization as of 1998.

Cognitive ability. The Graduate Management Admissions Test (GMAT) was used as a measure of cognitive ability, consistent with the work of O’Reilly and Chatman (1994). As noted by Kuncel et al., “Measures of cognitive ability are related to the acquisition of job knowledge just as they are related to the acquisitions of job knowledge needed in MBA programs. Some may draw a large distinction between academic work and the work of managers. The authors would like to suggest that the task content of both jobs is less dissimilar than some may believe.” (2007: 55) With the permission of respondents, GMAT scores were acquired directly from the Educational Testing Service, the organization that managed the GMAT test under the sponsorship of the GMAC. The mean and standard deviation for the current sample was 500 and 102.6, respectively. The mean score for respondents from the current study is similar to the mean of 496 reported for all individuals who took the GMAT in 1990. Human Capital Measures

College major. Respondents were asked to report their college major in Wave I.

Dummy variables were created to measure whether the individual received an undergraduate degree in business, engineering, physical sciences, or social sciences.

Work experience. Respondents were asked to indicate the number of years they had worked full-time as of 1998.

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HOLTOM, INDERRIEDEN, AND KRAVITZ

Hours worked per week. This information was collected in Wave IV. Participants were asked to report the average number of hours worked each week in their current job. The number of hours an individual works each week can be treated as a measure of work commitment (Smith, 2005).

MBA Program and Career Decisions

MBA degree. To determine the incremental impact of additional education, a dummy variable was developed to measure whether or not a respondent received an MBA. The variable was coded as 0 = did not graduate with MBA, 1 = graduated with MBA.

Program prestige. Academic rankings are considered one way of measuring the prestige of a program. Rankings compiled by the U. S. News and World Reports are commonly used as a measure of program quality. In Wave IV, respondents indicated where they obtained their MBA degree. This information was used to determine if a respondent had graduated from one of the top 25 programs identified by U. S. News and World Reports in 1996. A dummy variable was computed. For individuals who graduated from a top 25 program, prestige was coded as “1.” All other participants’ responses were coded as “0.”

Placement services. Respondents were asked if they used the placement services associated with their MBA program. The variable was coded as a dummy variable where 0 = did not use placement services and 1 = used placement services.

RESULTS

The means, standard deviations, and correlations for the variables in this study are

displayed in Table 1. Bivariate correlations with the predictors are consistent with past research. Final (1998) compensation correlates significantly with gender (males higher), cognitive ability, undergraduate major (relatively high for engineering and low for business), work variables (work experience and hours worked), and MBA program variables (earning an MBA and MBA program prestige). None of the bivariate correlations among the predictors exceeded 0.54 and only six exceeded 0.30, so multicollinearity is unlikely to be a problem.

The hypotheses were tested using OLS regression analysis (see Table 2). A Chow Test was performed to determine whether the independent variables, as a set, have a different impact on blacks (R2 = 0.60) and whites (R2 = 0.34). The test was significant (F13,1083 = 8.54, p < 0.01) indicating that separate models (equations) should be computed and interpreted for blacks and whites. The first equation in Table 2 presents the findings for the entire sample, while equations 2 and 3 present the results for whites and blacks, respectively. The regression coefficients given in Table 2, along with their significance levels, are from the final regression equations that include all predictors.

JOURNAL OF MANAGERIAL ISSUES Vol. XXVI Number 1 Spring 2014

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HOLTOM, INDERRIEDEN, AND KRAVITZ

Beginning compensation was the strongest predictor of final compensation in the full sample. Utilizing a z-test (Paternoster et al., 1998), no difference was found between blacks and whites (z < 1.0, p > 0.10) for this predictor. Gender was statistically significant in the full sample and among the whites, but not for blacks. This difference in statistical significance, however, is presumably due to differences in sample size and thus statistical power, given that the regression coefficients were similar in the black and white equations (z < 1.0, p > 0.10).

Consistent with earlier research, cognitive ability (GMAT score) was significantly related to compensation growth, for both blacks and whites. Human capital variables had a mixed effect on compensation growth for whites and blacks. As shown in Table 2, the impact of number of hours worked per week was substantially stronger for whites than for blacks (z > 4.10, p < 0.01). In general, college major was not a significant predictor of compensation growth, though majoring in the social sciences was a negative predictor for blacks ( = -0.12, p < 0.05).

Table 2

Results of Regression Analyses Predicting 1998 Compensation

Full Sample (1)

White (2)

Black (3)

R2 R2 R2 (1) Race (Black) -0.02 0.01** NA NA NA NA

(2) 1990 Compensation 0.42** 0.21** 0.38** 0.20** 0.54** 0.36**

(3) Gender (Male) 0.06** 0.12** 0.06* 0.12** 0.07 0.15**

Tenure 0.00 0.01 0.04

Cognitive Ability 0.14** 0.14** 0.13*

Major–Engineering -0.03 -0.04 -0.04

Major–Physical Science 0.01 0.00 0.04

Major–Social Science -0.02 0.03 -0.12*

Work Experience -0.05* -0.05 -0.06

Hours Worked Per Week

0.20** 0.26** 0.12*

(4) MBA Degree 0.05 0.03** 0.02 0.02** 0.06 0.09**

High Prestige of MBA 0.12** 0.14** 0.15**

Placement Center 0.03 0.02 0.20**

R2 0.37** 0.34** 0.60**

d.f. 16/1080 12/903 12/168

Overall F 56.54** 38.80** 21.42** Note: Values are standardized regression coefficients based on the final regression that

included all predictors. * p < 0.05, ** p < 0.01

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Hypothesis 1 predicted that attending a highly ranked MBA program would have a more positive impact on compensation growth for blacks than for whites. Results displayed in Table 2 show that attendance at a top-ranked MBA program was positively related to compensation growth for whites ( = 0.14, p < 0.01) and blacks ( = 0.15, p < 0.01), but it is clear that the effects do not differ. A z-test shows no significance between the regression coefficients for whites and blacks (z < 1.0, p > 0.10). Thus, Hypothesis 1 is not supported.

Hypothesis 2 predicted that use of placement center services would have a more positive effect for blacks than for whites. As shown in Table 2, use of the career placement service was associated with a compensation increment only among blacks ( = 0.20, p < 0.01). In fact, use of the placement services was the second largest predictor of compensation growth for blacks and even greater than high-prestige MBA. Use of the placement center had no effect on whites’ 1998 salaries, and the difference between blacks and whites was statistically significant (z = 2.21, p < 0.05).

DISCUSSION

The main objective of this research was to determine if there are different factors

influencing compensation growth for blacks and whites. The study examined the predictors of compensation growth for a group of young professionals who had taken the GMAT, approximately half of whom had subsequently earned an MBA and 8% of whom had earned an MBA at a high prestige school. The full sample of MBA programs represents a broad cross-section of schools: public and private, full-time and part-time, ranked and unranked. Further, this study purposefully includes individuals with a variety of backgrounds, experience, and abilities. Because of the focus on determining the differential impact of the MBA degree for blacks and whites, measuring the relative change in compensation before and after receiving the degree provided a good standard for comparison.

The findings indicate some predictors of compensation growth are the same for blacks and whites while others are not. Higher compensation was related to compen- sation eight years earlier, cognitive ability, hours worked per week, the receipt of an MBA, and the prestige of the MBA-granting institution for both groups. The impact of hours worked per week on compensation growth was significantly different for blacks and whites. This may indicate blacks get less benefit from long hours of work, as also shown for women (Kmec and Gorman, 2010). Similar results were reported by Bertrand and Mullainathan (2004), who found that a manipulation of credentials had a positive effect on the callback rate for white applicants but not for blacks. However, blacks in this study benefited from the use of placement center services available to them in the MBA programs, but whites did not. As noted in previous research, professional networks are extremely important contributors to professional success. While most research points to the importance of informal networks, blacks may not have the same access to influential individuals, given their networks tend to be denser and dominated by individuals who are highly similar (Ibarra, 1993). The career centers in MBA programs serve to create connections between job candidates and recruiters from organizations and send a signal regarding qualifications. In addition, the career centers bring together interested parties who otherwise might not be introduced. In short, it appears that MBA placement centers have a more positive impact on career success of black than white MBA students.

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Researchers have noted that many of the opportunities for advancement in organizations are based on relatively vague criteria and are developed in informal interactions both inside and outside the organization. Minority professionals are disadvantaged because they have a much smaller set of same-race others with whom to have informal interactions (Marsden, 1988), and therefore must rely on the more slow- moving formal organization system for opportunities (Miech et al., 2003). The placement centers not only put blacks in contact with potential job opportunities but also provide a signal concerning the appropriate type of job and compensation.

There are also a number of practical implications of this work. First, completing an MBA from a prestigious program and making use of the placement services available there adds significant value for blacks. Nine percent of the compensation growth for blacks was attributable to these two factors. The simple example below overlooks racial differences but clearly demonstrates the broader financial implications of earning an MBA at a Top 25 school. In 2010, the average compensation of a person entering an MBA program at a top school was approximately $75,000; the post-MBA compensation at that same set of schools was in excess of $105,000 in 2012 (Damast, 2012). Assuming modest annual increases (3%), the lifetime value of this compensation increase is approximately $1,500,000 in additional earnings.

A second practical implication of this work is the value of placement centers in improving job fit probabilities for blacks, which benefits both the individuals and the organizations. Given the potential value in developing workforce diversity in organizations (Thomas, 2004) as well as affirmatively promoting opportunities for underrepresented minorities, it appears that investments in placement centers have demonstrated merit.

Finally, please note the differential impact of hours worked for blacks and whites. This difference suggests that organizations committed to developing minority talent should devote more attention to using objective determinants of compensation and periodically examine race-based differences on multiple variables–as predictors of compensation rather than simply on compensation alone. Though this type of analysis would be possible only in large organizations, it would improve the probability of fair treatment for minorities.

LIMITATIONS AND FUTURE RESEARCH

There are clearly a number of limitations to this study that should be noted. Because

the questionnaire was not designed only for this research, it was not possible to assess the impact of informal social networks on career success. Future research on early career success should include not only measures of placement centers but also measures of informal networks, including homophily, range, tie strengths and density. Evidence indicates that white men are better able than women and minorities to convert their education and experience into access to personal networks, both formal and informal (Ibarra, 1992). Secondly, the data focuses only on the early careers of MBA graduates. Although the results indicate that utilizing career services helped blacks to improve their compensation in the first few years post-MBA, it remains to be seen if using a formal recruiting source has a long-term impact on career success. Third, the survey simply assessed whether someone used the MBA placement center. Future studies might investigate whether a job was obtained through the placement center. Additionally, it

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was not possible to control for industry or region or any number of other factors that might account for incremental variance in the results obtained. Finally, the measure of success may be affected by individuals utilizing the MBA degree to change careers. Given the use of secondary data, it was not possible to obtain information on career change. Notwithstanding these limitations, this is a robust dataset with a number of strengths. Not only is there a large sample size, roughly equal numbers of MBA and non-MBA respondents who were studied over time using a longitudinal rather than cross-sectional design, but also many other powerful predictors of compensation growth that were controlled (e.g., cognitive ability, undergraduate major, years of experience).

CONCLUSION

In summary, there is clear evidence that cognitive ability and hours worked

generally predict compensation growth. Moreover, earning an MBA results in higher income, an effect that is even greater if one attends a top-tier school. Importantly, the data indicate that blacks who work with career placement centers are advantaged in the job search and match process. Thus, while schools are likely to continue to encourage students to actively engage with on-campus career centers, they should reach out to black students in particular to maximize the benefits these centers provide. Finally, organizations seeking to obtain minority talent are well advised to work through MBA career centers.

References

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The JMI in Brief

Volume XXVI Number 1 Spring 2014 The Advantages of High-Prestige MBA Degrees and Placement Centers for

Compensation Growth of African Americans ............................................................. 7 Brooks C. Holtom, Edward J. Inderrieden, and David A. Kravitz

Many in society are asking searching questions about the costs and benefits of university education and MBA education in particular. Moreover, the role of education in promoting equal opportunity is being examined. One factor of particular interest to careers researchers and educators is the use of career placement centers especially as regards their role in promoting minority advancement. In testing a sample of over 7,000 registrants for the Graduate Management Admissions Test, clear evidence emerged that earning an MBA results in higher income, an effect that is even greater if one attends a top-tier school. But most importantly for this study, the data indicated that blacks are advantaged in the job search and match process by working with career placement centers. Thus, while schools are likely to continue to encourage all students to actively engage with on-campus career centers, they should reach out to black students in particular to maximize the benefits these centers provide. Finally, organizations seeking to obtain minority talent are well advised to work through MBA career centers.

Searching Inside and Out: Organizational Identification Relationships and

Information-Sourcing among Managers and Knowledge-Workers ........................... 22 Amy Guerber, Iris Reychav, and Vikas Anand

This paper, examines the effect of three forms of organizational identification relationships – identification, disidentification, and ambivalent identification – on information-sourcing from within one’s work unit and outside the firm. Data obtained from three diverse Israeli firms indicate that identification increases the likelihood that individuals will source information from both within the work unit and outside the organization, and disidentification has a curvilinear relationship with external information-sourcing and no effect on internal information- sourcing. Ambivalent identification positively influences external information-sourcing but not internal information-sourcing. Additionally, results show that the effects of identification on external information- sourcing are more pronounced for non-managers than for managers.

Mergers and Acquisitions: Termination Fees and Acquisition Deal Completion .............. 44

Companies undertake mergers and acquisitions (M&A) to create synergies from cost savings and/or revenue enhancement. The process of acquiring a

Frank C. Butler and Peter Sauska

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