Can They Take It With Them? The Portability of Star Knowledge Workers' Performance

Boris Groysberg (), Linda-Eling Lee () and Ashish Nanda ()
Additional contact information
Boris Groysberg: Harvard Business School, Harvard University, Boston, Massachusetts 02163
Linda-Eling Lee: Harvard Business School, Harvard University, Boston, Massachusetts 02163
Ashish Nanda: Harvard Law School, Harvard University, Cambridge, Massachusetts 02138

Management Science, 2008, vol. 54, issue 7, 1213-1230

Abstract: This paper examines the portability of star security analysts' performance. Star analysts who switched employers experienced an immediate decline in performance that persisted for at least five years. This decline was most pronounced among star analysts who moved to firms with lesser capabilities and those who moved solo, without other team members. Star analysts who moved between two firms with equivalent capabilities also exhibited a drop in performance, but only for two years. Those who switched to firms with better capabilities and those who moved with other team members exhibited no significant decline in short-term or long-term performance. These findings suggest that firm-specific skills and firms' capabilities both play important roles in star analysts' performance. In addition, we find that firms that hire star analysts from competitors with better capabilities suffered more extreme negative stock-market reactions than those that hire from comparable or lesser firms. These findings suggest that hiring stars may be perceived as value destroying and may not improve a firm's competitive advantage.

Keywords: firm-specific performance; team-specific performance; firm capabilities; productivity; mobility; knowledge workers (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (129)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.1070.0809 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:54:y:2008:i:7:p:1213-1230

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().