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The Effect of Outside Leaders on the Performance of the Organization: An Experiment

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  • Marcela Ibanez

    (Georg-August University Göttingen)

  • Elke Schaffland

    (Georg-August University Göttingen)

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    Abstract

    In order to deal with crises, organizations often bring expert leaders from outside. However, relying in an outside leader can result in decreased performance of the organization. In this paper, we use an experiment to investigate the role of identity and skills of the outside leader on the performance of the organization. Our results indicate that outside leaders are less committed than inside leaders and that group members cooperate less with an outsider than an inside leader.

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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_149.pdf
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    Bibliographic Info

    Paper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 149.

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    Date of creation: 16 Sep 2013
    Date of revision:
    Handle: RePEc:got:gotcrc:149

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    Postal: Platz der Goettinger Sieben 3; D-37073 Goettingen, GERMANY
    Phone: +49 551 39 14066
    Fax: + 49 551 39 14059
    Web page: http://www.uni-goettingen.de/en/82144.html

    Related research

    Keywords: Social Identity; Leadership; Public Good Game; Lab Experiment;

    This paper has been announced in the following NEP Reports:

    References

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    1. Eckel, Catherine C. & Grossman, Philip J., 2005. "Managing diversity by creating team identity," Journal of Economic Behavior & Organization, Elsevier, vol. 58(3), pages 371-392, November.
    2. Simon Gaechter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2009. "Who Makes A Good Leader? Cooperativeness, Optimism And Leading-By-Example," Discussion Papers 2009-19, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    3. Lorenz Goette & David Huffman & Stephan Meier, 2006. "The Impact of Group Membership on Cooperation and Norm Enforcement: Evidence Using Random Assignment to Real Social Groups," American Economic Review, American Economic Association, vol. 96(2), pages 212-216, May.
    4. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
    5. Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2007. "Leading-by-example and signaling in voluntary contribution games: An experimental study," Open Access publications from Tilburg University urn:nbn:nl:ui:12-302954, Tilburg University.
    6. Werner Güth & M. Vittoria Levati & Matthias Sutter & Eline van der Heijden, 2006. "Leading by example with and without exclusion power in voluntary contribution experiments," Papers on Strategic Interaction 2006-35, Max Planck Institute of Economics, Strategic Interaction Group.
    7. Gill, David & Prowse, Victoria, 2011. "A Novel Computerized Real Effort Task Based on Sliders," IZA Discussion Papers 5801, Institute for the Study of Labor (IZA).
    8. van der Heijden, Eline & Potters, Jan & Sefton, Martin, 2009. "Hierarchy and opportunism in teams," Journal of Economic Behavior & Organization, Elsevier, vol. 69(1), pages 39-50, January.
    9. Huson, Mark R. & Malatesta, Paul H. & Parrino, Robert, 2004. "Managerial succession and firm performance," Journal of Financial Economics, Elsevier, vol. 74(2), pages 237-275, November.
    10. McLeish, Kendra N. & Oxoby, Robert J., 2007. "Identity, Cooperation, and Punishment," IZA Discussion Papers 2572, Institute for the Study of Labor (IZA).
    11. Gürerk, Özgür & Irlenbusch, Bernd & Rockenbach, Bettina, 2009. "Motivating teammates: The leader's choice between positive and negative incentives," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 591-607, August.
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