IDEAS home Printed from https://ideas.repec.org/p/lan/wpaper/599378.html
   My bibliography  Save this paper

The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League

Author

Listed:
  • L H Kahane
  • N Longley
  • R Simmons

Abstract

We use a publicly available data set drawn from the professional sport industry to test for the impacts of coworker heterogeneity on firm performance. We focus particularly on the National Hockey League (NHL). NHL teams are truly global firms - they employ workers (players) from a variety of non-English-speaking countries, all of whom are integrated into a single work group (i.e. team). Players from different countries not only bring different languages and cultures, but also bring different playing styles - styles which must be effectively integrated into a cohesive playing unit. We use a panel data set that spans the seasons 2001-02 to 2007-08, and we control for a wide variety of variables that may affect a team's output. The question we pose is: all else equal, does the specific nationality mix on a team matter? In other words, for a given number of foreign players on a team, is it better to have all foreign players from a single country, or should teams attempt to employ foreign players from a variety of countries? Our results indicate that teams that are made up of mostly homogeneous European players appear to gain an advantage in team performance. Also, it appears that NHL teams perform better when their European players tend to come from the same country, rather than being spread across many European countries. We suggest that firms need to be cognizant of the way in which they diversify since the gains from diversity may be greatest when the foreign component of the workforce has, within itself, a higher degree of homogeneity.

Suggested Citation

  • L H Kahane & N Longley & R Simmons, 2009. "The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League," Working Papers 599378, Lancaster University Management School, Economics Department.
  • Handle: RePEc:lan:wpaper:599378
    as

    Download full text from publisher

    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/CoworkerHeterogeneity.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stefan Szymanski, 2000. "A Market Test for Discrimination in the English Professional Soccer Leagues," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 590-603, June.
    2. Gianmarco I.P. Ottaviano & Giovanni Peri, 2016. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: The Economics of International Migration, chapter 7, pages 229-264, World Scientific Publishing Co. Pte. Ltd..
    3. Zak, Thomas A & Huang, Cliff J & Siegfried, John J, 1979. "Production Efficiency: The Case of Professional Basketball," The Journal of Business, University of Chicago Press, vol. 52(3), pages 379-392, July.
    4. Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
    5. Dawson, Peter & Dobson, Stephen & Gerrard, Bill, 2000. "Estimating Coaching Efficiency in Professional Team Sports: Evidence from English Association Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 399-421, September.
    6. repec:ebl:ecbull:v:1:y:2003:i:2:p:1-10 is not listed on IDEAS
    7. Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(1), pages 47-71, August.
    8. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CESifo Working Paper Series 1117, CESifo Group Munich.
    9. Frederick Wiseman & Sangit Chatterjee, 2003. "Team payroll and team performance in major league baseball: 1985-2002," Economics Bulletin, AccessEcon, vol. 1(2), pages 1-10.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Coworker; Heterogeneity; Diversity; National Hockey League; Europeans;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lan:wpaper:599378. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giorgio Motta). General contact details of provider: http://edirc.repec.org/data/delanuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.