The Impact of Managerial Quality on Organizational Performance: Evidence from German Soccer
AbstractAlthough a considerable literature exists on determinants of managerial compensation, much of it focussing on the role of incentives, there is much less known about the im-pact of managerial remuneration and quality upon attainment of organizational goals. In this paper we use a novel panel data set from the German premier soccer league (Bundesliga) as a case to show how variations in managerial compensation impact posi-tively upon organizational (team) success. This positive impact is revealed using sto-chastic frontier production function estimation. Given a particular amount of spending on players relative to the rest of the Bundesliga, a team that hires a better quality coach can expect to achieve a higher points score by reducing technical inefficiency. However, our results also suggest that the market for head coaches may be allocatively inefficient in that coaches are paid below their marginal revenue products.
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Bibliographic InfoPaper provided by International Association of Sports Economists & North American Association of Sports Economists in its series Working Papers with number 0708.
Length: 20 pages
Date of creation: Apr 2007
Date of revision:
head coaches; soccer; efficiency; stochastic frontier analysis;
Other versions of this item:
- Bernd Frick & Robert Simmons, 2008. "The impact of managerial quality on organizational performance: evidence from German soccer," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 593-600.
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-04 (All new papers)
- NEP-BEC-2007-05-04 (Business Economics)
- NEP-EFF-2007-05-04 (Efficiency & Productivity)
- NEP-HRM-2007-05-04 (Human Capital & Human Resource Management)
- NEP-LAB-2007-05-04 (Labour Economics)
- NEP-MKT-2007-05-04 (Marketing)
- NEP-SPO-2007-05-04 (Sports & Economics)
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