Exponential random graph models for management research: a case study of executive recruitment

We introduce a recent development in the statistical analysis of relational data that offers rigorous discrimination of a variety of structural and behavioural effects of interest to management research. Exponential Random Graph Models (ERGMs) account for the highly interdependent nature of network data that is problematic for the predominant inferential statistical analysis used in management research. We illustrate the value of the approach with an application focused on executive recruitment by large UK firms, modelling migrations of managers among firms as a network of relationships. We find rigorous statistical support for the influences of industry origin in executive recruitment, particularly in relation to legal and accounting activities. The flexibility and sophisticated relational variables available in the models offer considerable analytical power of value to a wide range of management applications