THE IMPACT OF MANAGERIAL CHANGE ON PERFORMANCE: THE ROLE OF TEAM HETEROGENEITY |
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| Authors: | Gerd Muehlheusser Sandra Schneemann Dirk Sliwka |
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| Institution: | 1. +49 40 42838 5575+49 40 42838 9226;2. Professor, Department of Economics, University of Hamburg, Hamburg, Germany;3. +49 521 106 6111+49 521 106 6489;4. Ph.D. Candidate, Department of Sport Science, Bielefeld University, Bielefeld, Germany |
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| Abstract: | When a key responsibility of a manager is to allocate more or less attractive tasks, subordinates have an incentive to work hard and demonstrate their talents. As a new manager is less well informed, management dismissals reinvigorate this tournament competition—but only in sufficiently homogeneous teams. We investigate this hypothesis using a large dataset on dismissals of soccer coaches, whose main task is indeed the selection of players. We find that dismissals enhance performance (only) in homogeneous teams. Moreover, we show that there is typically a negative selection bias when evaluating succession effects, which reconciles previous contradictory findings. (JEL D22, J44, J63) |
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