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The Effect of Talent Disparity on Team Performance

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Author Info
Egon Franck () (Institute for Strategy and Business Economics, University of Zurich)
Stephan NŸesch () (Institute for Strategy and Business Economics, University of Zurich)

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Abstract

This paper studies the relationship between talent disparity and team productivity based on panel data from German soccer teams. Holding average ability and unobserved team heterogeneity constant, we find evidence that the players selected to play on the competition team should be rather homogeneous regarding their playing talent. If, however, the team is defined at the preparatory stage, which includes all training activities, talent disparity turns out to be beneficial. In a first model, we analyze match-level data to test the talent composition effects of the fielded team on the final score of the game. In a second model, we include the reserve players as well and relate talent differences within the entire squad to the teamÕs (inverted) league standing at the end of the season as the ultimate measure of long-run team effectiveness. At the competition stage of team production, the gameÕs result depends on all team members performing at or above some threshold level of proficiency. At the preparatory stage of team production, however, aspects like mutual learning seem to be more important.

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Publisher Info
Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0087.

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Length: 25 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:iso:wpaper:0087

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Related research
Keywords: Talent Disparity; Team Productivity; Sports Economics; Soccer;

Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

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This page was last updated on 2009-11-19.


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