The impact of managerial quality on organizational performance: evidence from German soccer
Article first published online: 7 OCT 2008
Copyright © 2008 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Volume 29, Issue 7, pages 593–600, October 2008
How to Cite
Frick, B. and Simmons, R. (2008), The impact of managerial quality on organizational performance: evidence from German soccer. Manage. Decis. Econ., 29: 593–600. doi: 10.1002/mde.1431
- Issue published online: 7 OCT 2008
- Article first published online: 7 OCT 2008
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.