Climbing the ranks: Knowledge diversification, promotions and managerial skills
Dr. Shinjae Won
Assistant Professor
School of Labor and Employment Relations
University of Illinois at Urbana-Champaign
This paper examines the invention histories and careers of 1319 inventors from the twenty most inventive firms in the pharmaceutical industry in the United States to study which scientists firms promote through the ranks. We propose that the association of diversification in past knowledge with promotions varies non-uniformly with rank. Scientists acquire managerial skills in the process of acquiring diversified knowledge through building superior coordination skills, having better ability to leverage relational capital, and an ability to relate to a wider scope of projects. Diversification is positively associated with promotion to the first managerial position, and thereafter with promotions within subsequent managerial roles. We further show that the association of diversification with promotions is positively moderated by rank, and that business education substitutes for diversified knowledge.