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Expert Leaders in a Fast-Moving Environment

Author

Listed:
  • Goodall, Amanda H.

    (Cass Business School)

  • Pogrebna, Ganna

    (University of Warwick)

Abstract

This paper is an attempt to understand the effects of leaders on organizational performance. We argue for an ‘expert leader’ model of leadership. We differentiate between four kinds of leaders according to their level of inherent knowledge and industry experience. After controlling for confounding variables, teams led by leaders with extensive knowledge of the core business perform better than others. Our study collects and analyses 60 years of data from one of the world’s most competitive high-technology sectors (Formula 1 competition) in which each organization’s performance can be measured objectively. We show that the most successful team leaders in F1 motor racing are more likely to have started their careers as drivers and mechanics compared with leaders who were principally managers or engineers with degrees. There is a notable association between driving and later success as a leader. Within the sub-sample of former drivers, those with the longest driving careers go on to be the most successful leaders.

Suggested Citation

  • Goodall, Amanda H. & Pogrebna, Ganna, 2012. "Expert Leaders in a Fast-Moving Environment," IZA Discussion Papers 6715, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6715
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    File URL: https://docs.iza.org/dp6715.pdf
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    References listed on IDEAS

    as
    1. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    2. Goodall, Amanda H., 2009. "Highly cited leaders and the performance of research universities," Research Policy, Elsevier, vol. 38(7), pages 1079-1092, September.
    3. John Antonakis & Samuel Bendahan & Philippe Jacquart & Rafael Lalive, 2010. "On making causal claims : A review and recommendations," Post-Print hal-02313119, HAL.
    4. Nicholas Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2010. "Modern Management: Good for the Environment or Just Hot Air?," Economic Journal, Royal Economic Society, vol. 120(544), pages 551-572, May.
    5. Amanda H Goodall, 2005. "Should Research Universities be Led by Top Researchers? Part 1: Are they?," HEW 0506003, University Library of Munich, Germany.
    6. Benjamin F. Jones & Benjamin A. Olken, 2005. "Do Leaders Matter? National Leadership and Growth Since World War II," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 835-864.
    7. Morten Bennedsen & Kasper Meisner Nielsen & Francisco Perez-Gonzalez & Daniel Wolfenzon, 2007. "Inside the Family Firm: The Role of Families in Succession Decisions and Performance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 647-691.
    8. Bennedsen, Morten & Pérez-González, Francisco & Wolfenzon, Daniel, 2007. "Do CEOs Matter?," Working Papers 13-2007, Copenhagen Business School, Department of Economics.
    9. Goodall, Amanda H., 2011. "Physician-leaders and hospital performance: Is there an association?," Social Science & Medicine, Elsevier, vol. 73(4), pages 535-539, August.
    10. Kocher, Martin G. & Pogrebna, Ganna & Sutter, Matthias, 2013. "Other-regarding preferences and management styles," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 109-132.
    11. repec:bla:jomstd:v:47:y:2010:i:s1:p:884-910 is not listed on IDEAS
    12. Goodall, Amanda H. & Kahn, Lawrence M. & Oswald, Andrew J., 2008. "Why Do Leaders Matter? The Role of Expert Knowledge," IZA Discussion Papers 3583, Institute of Labor Economics (IZA).
    13. Kevin J. Murphy & Jan Zabojnik, 2006. "Managerial Capital And The Market For Ceos," Working Paper 1110, Economics Department, Queen's University.
    14. Mark Jenkins, 2010. "Technological Discontinuities and Competitive Advantage: A Historical Perspective on Formula 1 Motor Racing 1950–2006," Journal of Management Studies, Wiley Blackwell, vol. 47(5), pages 884-910, July.
    15. Sophia Rabe-Hesketh & Anders Skrondal & Andrew Pickles, 2002. "Reliable estimation of generalized linear mixed models using adaptive quadrature," Stata Journal, StataCorp LP, vol. 2(1), pages 1-21, February.
    16. Alison Mackey, 2008. "The effect of CEOs on firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(12), pages 1357-1367, December.
    17. Ganna Pogrebna & David Krantz & Christian Schade & Claudia Keser, 2011. "Words versus actions as a means to influence cooperation in social dilemma situations," Theory and Decision, Springer, vol. 71(4), pages 473-502, October.
    18. Nick Bloom & Christos Genakos & Ralf Martin & Raffaella Sadun, 2010. "In brief: Modern Management: Good for the environment or just hot air?," CentrePiece - The magazine for economic performance 303, Centre for Economic Performance, LSE.
    19. Goodall, Amanda H. & Kahn, Lawrence M. & Oswald, Andrew J., 2011. "Why do leaders matter? A study of expert knowledge in a superstar setting," Journal of Economic Behavior & Organization, Elsevier, vol. 77(3), pages 265-284, March.
    20. Goodall, Amanda H., 2012. "A Theory of Expert Leadership," IZA Discussion Papers 6566, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Thomas Peeters & Steven Salaga & Matthew Juravich, 2015. "Matching and Winning? The Impact of Upper and Middle Managers on Team Performance in Major League Baseball," Tinbergen Institute Discussion Papers 15-115/VII, Tinbergen Institute, revised 03 Mar 2020.
    2. Goodall, Amanda H., 2012. "A Theory of Expert Leadership," IZA Discussion Papers 6566, Institute of Labor Economics (IZA).
    3. Amanda Goodall, 2013. "Should Doctors Run Hospitals?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(1), pages 37-40, 04.
    4. Zehnder, Christian & Herz, Holger & Bonardi, Jean-Philippe, 2016. "A productive clash of cultures : injecting economics into leadership research," FSES Working Papers 478, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    5. Goodall, Amanda H. & Osterloh, Margit, 2015. "Women Have to Enter the Leadership Race to Win: Using Random Selection to Increase the Supply of Women into Senior Positions," IZA Discussion Papers 9331, Institute of Labor Economics (IZA).
    6. repec:ces:ifodic:v:11:y:2013:i:1:p:19078515 is not listed on IDEAS

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    More about this item

    Keywords

    expert leaders; leadership; organizational performance; high-tech; teams;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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