Sang Won Han, an Assistant Professor of Sociology at Sungkyunkwan University (co-first author), in collaboration with Shinjae Won, an Associate Professor of Management and Strategy at Ewha Womans University, has published a study in the Strategic Management Journal, a leading journal in the field of management. The paper, titled “Hiring at the Tip of the Funnel: Externalizing the Work of Integrating and Coordinating Diverse Human Capital,” introduces a new perspective on how firms can resolve a core challenge in talent recruitment.
When firms hire from outside, they face a fundamental trade-off: recruiting from diverse sources brings valuable knowledge and experience, but also increases the costs of integrating employees with different backgrounds. This study moves beyond traditional approaches by examining talent mobility as a network of inter-firm connections, showing that firm performance depends on where a company is positioned within that network.
The study introduces the concept of the “Tip of the Funnel,” a strategy in which firms recruit directly from a small number of carefully selected companies that themselves draw talent from diverse sources. This structure allows firms to access a broad range of knowledge indirectly, while reducing the internal burden of coordination and integration.
Empirical evidence supports this idea. In 2016, Nvidia adopted such a strategy by concentrating hiring on a few firms like Cisco and Intel, which themselves recruited broadly (see Figure attached). Positioned at the “end” of this funnel, Nvidia achieved strong innovation performance, suggesting that this network structure can enhance organizational outcomes.
The study also finds that these benefits are especially strong in firms with cohesive organizational cultures, which help integrate new employees more effectively. Overall, the research highlights that successful recruitment is not simply about hiring broadly or selectively, but about strategically positioning the firm within a broader talent mobility network.
Professor Han noted, “Firms can improve performance by selectively hiring from organizations that have already integrated diverse talent. This study shows that talent mobility networks can serve as a new source of competitive advantage.”
This study contributes to ongoing discussions in strategic management by reframing talent acquisition as a problem of network positioning, offering a new lens for understanding how firms can simultaneously achieve innovation and organizational efficiency.
※ Title: Hiring at the Tip of the Funnel: Externalizing the Work of Integrating and Coordinating Diverse Human Capital.
※ Journal: Strategic Management Journal
▲President Cho Myung-woo and Alumni Association President Kim Jong-woo share a meal with students after completing the “1,000-Won Breakfast” volunteer service.
