Stars in their Constellations

While much attention is accorded to Star performers, this paper considers the extent to which stars, themselves, benefit from the contribution of their collaborators' (the constellation). By considering stars, constellations, and synergies between them, we address a key question: To what extent is collaboration performance driven by the great individual or by great constellations? We introduce a novel approach that employs a matching model to uncover the complementarities driving collaboration formation. We use formal value-capture theory to estimate the relative contribution of stars and constellations to joint value creation. Analyzing a sample of academic research collaborations, we document that stars' relative contribution exceeds their constellations' contribution in less than 15% of collaborations, while constellations provide a greater relative contribution in 9%. In most collaborations, neither party dominates: innovation is a collective endeavor driven equally by the star and the constellation. Joint value creation and relative contribution are explained by the subtle interplay between complementarities in joint work and the substitutability of collaborative parties in the market. Joint value creation increases with the strength of complementarities between parties in a match. Relative value creation, and hence dominance, increases with the substitutability of one's collaborative partner. Interestingly, joint value creation is greatest in collaborations where both stars and constellations offer bundles of rare attributes and where neither the star nor the constellation dominates.