The impact of managerial quality on organizational performance: evidence from German soccer

Bernd Frick and Robert Simmons
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Bernd Frick: University of Paderborn, Paderborn, Germany, Postal: University of Paderborn, Paderborn, Germany
Robert Simmons: Lancaster University Management School, Lancaster, UK, Postal: Lancaster University Management School, Lancaster, UK

Managerial and Decision Economics, 2008, vol. 29, issue 7, pages 593-600

Abstract: 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 positively upon organizational (team) success. Using stochastic frontier analysis, we find that a team that hires a better quality coach can expect to achieve a higher league points total 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. Copyright © 2008 John Wiley & Sons, Ltd.

Date: 2008
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Persistent link: http://EconPapers.repec.org/RePEc:wly:mgtdec:v:29:y:2008:i:7:p:593-600

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