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Effective Leadership Selection in Complementary Teams

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  • Keisuke Hattori
  • Mai Yamada

Abstract

This paper considers effective leadership selection in a simple team-production model with heterogeneous agents. We demonstrate leadership success through synergy by showing that the existence of synergy is crucial for effective leadership. The synergy makes the team members' efforts complementary, which gives birth to eager leaders. We also show that, to elicit greater team production, a principal should appoint the agent with higher opportunity cost as the leader. Even if the agents' opportunity costs are unobservable to the principal, the principal can identify and select a better leader by proposing a larger position allowance for the leader.

Suggested Citation

  • Keisuke Hattori & Mai Yamada, 2020. "Effective Leadership Selection in Complementary Teams," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 176(4), pages 620-639.
    • Handle: RePEc:mhr:jinste:urn:doi:10.1628/jite-2020-0037
    DOI: 10.1628/jite-2020-0037
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    Cited by:

    1. Hattori, Keisuke & Yamada, Mai, 2023. "Closing the Psychological Distance: The Effect of Social Interactions on Team Performance," MPRA Paper 117042, University Library of Munich, Germany.

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    More about this item

    Keywords

    team production; leadership selection; synergy effect; complementary team;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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