TY - JOUR
T1 - Signaling theory
T2 - A review and assessment
AU - Connelly, Brian L.
AU - Certo, Samuel
AU - Ireland, R. Duane
AU - Reutzel, Christopher R.
PY - 2011/1
Y1 - 2011/1
N2 - Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information. Typically, one party, the sender, must choose whether and how to communicate (or signal) that information, and the other party, the receiver, must choose how to interpret the signal. Accordingly, signaling theory holds a prominent position in a variety of management literatures, including strategic management, entrepreneurship, and human resource management. While the use of signaling theory has gained momentum in recent years, its central tenets have become blurred as it has been applied to organizational concerns. The authors, therefore, provide a concise synthesis of the theory and its key concepts, review its use in the management literature, and put forward directions for future research that will encourage scholars to use signaling theory in new ways and to develop more complex formulations and nuanced variations of the theory.
AB - Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information. Typically, one party, the sender, must choose whether and how to communicate (or signal) that information, and the other party, the receiver, must choose how to interpret the signal. Accordingly, signaling theory holds a prominent position in a variety of management literatures, including strategic management, entrepreneurship, and human resource management. While the use of signaling theory has gained momentum in recent years, its central tenets have become blurred as it has been applied to organizational concerns. The authors, therefore, provide a concise synthesis of the theory and its key concepts, review its use in the management literature, and put forward directions for future research that will encourage scholars to use signaling theory in new ways and to develop more complex formulations and nuanced variations of the theory.
KW - information asymmetry
KW - literature review
KW - signal
KW - signaling theory
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U2 - 10.1177/0149206310388419
DO - 10.1177/0149206310388419
M3 - Review article
AN - SCOPUS:78650365532
SN - 0149-2063
VL - 37
SP - 39
EP - 67
JO - Journal of Management
JF - Journal of Management
IS - 1
ER -