Exploring the impact of specialist and generalist stars on organizational performance.

Abstract

We analyze the impact of specialist and generalist stars on organizational performance by linking the literature on star employees and specialization. Our adaptive role framework allows stars to switch roles over time. We develop a game-theoretical model to derive hypotheses and to empirically test them using basketball data. Consistent with theoretical predictions, the results show that teams with generalist stars outperform those with specialists. While a generalist switching to a specialist role always worsens performance, a specialist switching to a generalist role may improve performance. Additional estimations suggest that these findings hold for teams relying on a unique star rather than multiple stars.