Referring to Referrals: The effects of human-app interaction and network externalities on the acceptance and use of referral recruitment mobile apps

Abstract: Employee recruitment has evolved from a business strategy to become a business necessity. Aided with the increased importance of technology in corporations, novel recruitment initiatives have started to emerge in the market as well, one of them being referral recruitment mobile applications. Previous research has demonstrated that referral recruitments can be more effective and beneficial for corporations, yet, a review of past research also unveils a limited knowledge of what factors and elements drive the adoption and user retention of digital referral recruitment platforms. Accordingly, the thesis aims to illuminate the essential elements that motivate and influences the acceptance and use of referral recruitment mobile applications. Based on the uses and gratifications (U&G) theory, UTAUT and the network externalities (NEs) paradigm, we then constructed a conceptual and empirical framework that breakdown the effects of human-app interaction and perceived network externalities on the users' attitude and, ultimately, their intention to refer in the referral recruitment platform. With a quantitative approach, more specifically the partial least square structural equation modelling (PLS-SEM), 89 referral agents from a Stockholm-based referral recruitment company were surveyed and analyzed. The results suggest that both human- app interactions and network externalities have significant impact on intention to refer through its moderating effects on utilitarian motivation, hedonic motivation and relational motivation. Potential users of referral applications will mostly choose a platform based on how practical and more convenient they are in helping them achieve their referral goals. Finally we also provided implications for managers who are aiming to create or improve upon a referral recruitment platform to the market.