Peer Influence and IT Career Choice

Abstract

The productivity of the information technology (IT) industry depends on the supply of high-quality human capital, especially of managers who contribute to operational, finance, sales and marketing, and leadership roles. This study examines the influence of IT peers on the choice a management student makes to pursue a career in the IT industry. Analyzing student networks at a leading business school in India, we find that having peers who have worked in IT reduces the likelihood of receiving and accepting an offer in the IT industry. If a student has no IT experience, however, IT peers ameliorate this effect to a certain degree. Our study has important implications for the IT industry and for management schools. First, managers trying to exploit peer-to-peer learning as a way to train workers ought to be aware that negative messages could be transmitted along with positive ones, leading to productivity loss. Second, we highlight that peer influences are important when managers in emerging economies choose their occupations and industries. Managers seeking to attract more talent to the IT industry should keep this channel in mind while designing recruitment strategies.