Dancing with the stars: The benefits of a star employee’s temporary absence for firm performance

Abstract

Prior research on star performers in teams has largely examined contexts with limited interdependence between stars and non-stars and has therefore focused almost exclusively on the benefits of utilizing the star’s superior individual skills. In contrast, we examine the implications of integrating a star into a team with high interdependence among team members. In such situations, a firm must not only consider a star’s individual skills but also her effect on organizational routines that are adapted to integrate the star. We propose that there is a tendency for firms to be locked into inferior routines. A star’s temporary absence breaks the lock-in by triggering a search for improved routines. Therefore we predict that a star’s temporary absence increases team performance above levels achieved prior to her absence. Using comprehensive data from the National Basketball Association, we find support for this prediction. We also theorize on mechanisms that explain the performance increase. This study contributes to research on the microfoundations of firm performance and on the downsides associated with star performers.