THE EFFECT OF ETHICAL SIGNALS ON RECRUITMENT ...

and CMD. Although the majority of applicants would not be attracted to a low
performing firm (all else being equal), those with higher SIMI and CMD will be even
less attracted to a low performing firm who has engaged in unethical recruitment and/or
organizational practices than those with lower SIMI and CMD. In other words, similar
to the argument detailed above, ethical signals will matter more to those individuals with
high SIMI than to those with low SIMI because high SIMI individuals place a high value
on belonging to an organization that shares their morals. Similarly, individuals with
high CMD tend to consider elements beyond compliance with the law as “ethical.” Thus,
in a low performing firm, ethical signals will be more evident and matter more to those
individuals with a high CMD (compared to those with a low CMD). Therefore, I
hypothesize the following:
Hypothesis 6a: There is a three-way interaction between organizational practices,
SIMI, and firm performance on attraction such that the two-way interaction
between organizational practices and SIMI will be stronger when performance is
low than when performance is high.
Hypothesis 6b: There is a three-way interaction between recruitment practices,
SIMI, and firm performance on attraction such that the two-way interaction
between recruitment practices and SIMI will be stronger when performance is
low than when performance is high.
Hypothesis 7a: There is a three-way interaction between organizational practices,
CMD, and firm performance on attraction such that the two-way interaction
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