The CET theory focus on time was derived from the recognition of unit-level turnover as a measure
of the flow of human capital degradation. The theory asserts that the rate and timing of one component
within the system can be expected to differentially affect outcomes because other system
components react. We extend this idea by examining the specific timing of relationships where such
a connection is likely to matter—turnover, hiring, transfers (-in and -out), job demands, and performance.
Thus, there is a complex coevolution among the system variables—change begets change
throughout the system. A basic systems theory view recognizes that stocks and flows in a system are linked via interconnected loops of action and feedback resulting in non-recursive causality of the elements within the
system. As Elster points out, “The social sciences, like other empirical sciences, try to explain two
sorts of phenomena: events and facts. [. . .] explaining events is logically prior to explaining facts. A
fact is a temporal snapshot of a stream of events, or a pile of such snapshots” (1989: p. 3). Events (or
flows) constantly shape facts (or stocks) that are cross-sectional insights into the process. Over time,
human capital flow, job demands, and patient satisfaction may all affect not only the current state of
the system, but also impact changes to the system in the future. Future inflows of human capital may
stem from current outflows, interim job demands, market demands, or the organizational recognition
of superior patient satisfaction. However, differences in the speed of feedback being received, and
execution of subsequent reactions in the human capital flow system, can make duration effects between
variables differ.