Dancing with the stars: The benefits of a star employee's temporary absence for firm performance
Description
Prior research on star performers in teams has largely focused on contexts with limited interdependence between stars and non-stars, and has therefore emphasized the benefits of leveraging a star’s superior individual skills. In contrast, we examine the implications of integrating a star into a team characterized by high interdependence among its members. In such settings, firms must consider not only a star’s individual capabilities but also the impact of the star on organizational routines that evolve to accommodate their presence. We propose that firms tend to become locked into suboptimal routines when adapting to a star performer. A star’s temporary absence can disrupt this lock-in by triggering a search for improved routines. Consequently, we predict that a star’s temporary absence leads to an increase in team performance beyond levels achieved prior to the absence. Using comprehensive data from the National Basketball Association (NBA), we find empirical support for this prediction. We also theorize the mechanisms underlying this performance improvement. This study contributes to the literature on the microfoundations of firm performance and highlights potential downsides associated with reliance on star performers.
Copyright Date
January 2017
Publication Date
1-1-2017
Keywords
Human capital, Organizational learning, Routines, Organizational performance, Organizational adaptation
Conference
31st March, 2017, Wipro Limited, Electronic City, Bangalore
