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The Effects of Management Practices on Productivity: Evidence from Baseball Team Production

  • Young Hoon Lee

    ()

    (Department of Economics, Sogang University, Seoul)

This paper studies the effects of various management practices on production efficiency by using panel data set of baseball teams. Particularly, we are interested in the effects of work force characteristics (age of workers, age variations, roster stability, and worker's talent disparity) on team production, since construction of roster (the player distribution decision) is a major part of team management every off-season. It finds that efficiency differences caused from management are considerably larger than those from coaching ability. Additionally, neither positive nor negative peer effects are found since the playing talent disparity does not influence statistically significantly on team efficiency. Another empirical finding is the negative correlation between the intrinsic ability of manager and hitter's age. It is implied that either an efficient manager tends to prefer young workers, or young workers makes their manager more efficient. That is, excellent leadership operates better when working forces are young.

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File Function: First version, 2010
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Paper provided by Research Institute for Market Economy, Sogang University in its series Working Papers with number 1005.

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Length: 41 pages
Date of creation: 2010
Date of revision: 2010
Handle: RePEc:sgo:wpaper:1005
Contact details of provider: Postal: 1 Sinsu-dong, Mapo-gu, Seoul 121-742
Phone: 82-2-705-8226
Fax: 82-2-705-8226
Web page: http://home.sogang.ac.kr/sites/sgrime
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  1. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1989. "Production Frontiers With Cross-Sectinal And Time-Series Variation In Efficiency Levels," Working Papers 89-18, C.V. Starr Center for Applied Economics, New York University.
  2. Peter Dawson & Stephen Dobson & Bill Gerrard, 2000. "Stochastic Frontiers and the Temporal Structure of Managerial Efficiency in English Soccer," Journal of Sports Economics, , vol. 1(4), pages 341-362, November.
  3. 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.
  4. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011. "Management Practices Across Firms and Countries," CEP Discussion Papers dp1109, Centre for Economic Performance, LSE.
  5. Rodney Fort & Young Hoon Lee & David Berri, 2008. "Race, Technical Efficiency, and Retention: The Case of NBA Coaches," International Journal of Sport Finance, Fitness Information Technology, vol. 3(2), pages 84-97, May.
  6. Antonio Alvarez & Christine Amsler & Luis Orea & Peter Schmidt, 2006. "Interpreting and Testing the Scaling Property in Models where Inefficiency Depends on Firm Characteristics," Journal of Productivity Analysis, Springer, vol. 25(3), pages 201-212, 06.
  7. Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer, vol. 27(1), pages 47-71, 08.
  8. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181, March.
  9. Caudill, Steven B. & Ford, Jon M., 1993. "Biases in frontier estimation due to heteroscedasticity," Economics Letters, Elsevier, vol. 41(1), pages 17-20.
  10. Ann P. Bartel & Casey Ichniowski & Kathryn L. Shaw, 2005. "How Does Information Technology Really Affect Productivity? Plant-Level Comparisons of Product Innovation, Process Improvement and Worker Skills," NBER Working Papers 11773, National Bureau of Economic Research, Inc.
  11. Caudill, Steven B & Ford, Jon M & Gropper, Daniel M, 1995. "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 105-11, January.
  12. Young Hoon Lee & David Berri, 2008. "A Re-Examination Of Production Functions And Efficiency Estimates For The National Basketball Association," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(1), pages 51-66, 02.
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