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

Author

Listed:
  • Marcela Ibanez

    (Georg-August University Göttingen)

  • Elke Schaffland

    (Georg-August University Göttingen)

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.

Suggested Citation

  • Marcela Ibanez & Elke Schaffland, 2013. "The Effect of Outside Leaders on the Performance of the Organization: An Experiment," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 149, Courant Research Centre PEG.
  • Handle: RePEc:got:gotcrc:149
    as

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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_149.pdf
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    References listed on IDEAS

    as
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    3. M. Vittoria Levati & Matthias Sutter & Eline van der Heijden, 2007. "Leading by Example in a Public Goods Experiment with Heterogeneity and Incomplete Information," Journal of Conflict Resolution, Peace Science Society (International), vol. 51(5), pages 793-818, October.
    4. 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.
    5. Simon Gächter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2012. "Who Makes A Good Leader? Cooperativeness, Optimism, And Leading-By-Example," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 953-967, October.
    6. 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.
    7. Victoria Prowse & David Gill, 2009. "A Novel Computerized Real Effort Task Based on Sliders," Economics Series Working Papers 435, University of Oxford, Department of Economics.
    8. McLeish, Kendra N. & Oxoby, Robert J., 2007. "Identity, Cooperation, and Punishment," IZA Discussion Papers 2572, Institute for the Study of Labor (IZA).
    9. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
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    Cited by:

    1. Banuri, Sheheryar & Keefer, Philip, 2016. "Pro-social motivation, effort and the call to public service," European Economic Review, Elsevier, vol. 83(C), pages 139-164.
    2. Felipe Augusto de Araujo & Erin Carbone & Lynn Conell-Price & Marli W. Dunietz & Ania Jaroszewicz & Rachel Landsman & Diego Lamé & Lise Vesterlund & Stephanie Wang & Alistair J. Wilson, 2015. "The Effect of Incentives on Real Effort: Evidence from the Slider Task," CESifo Working Paper Series 5372, CESifo Group Munich.

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    Keywords

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

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