Organizational Performance with In-group and Out-group Leaders : An Experiment

In this paper, we compare the performance of a homogeneous organization in which group members and the leader belong to the same group, with a heterogeneous organization in which the leader is an outsider. Using a modified public goods game in which leaders’ performance in a real effort task determi...

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Main Authors:	Ibanez, Marcela, Schaffland, Elke
Format:	Journal Article
Published:	Elsevier 2018
Subjects:	PUBLIC GOODS GAME GROUP MEMBERSHIP LEADERSHIP EXPERIMENT ORGANIZATIONAL PERFORMANCE COOPERATION
Online Access:	http://hdl.handle.net/10986/29366

id	okr-10986-29366
recordtype	oai_dc
spelling	okr-10986-293662021-05-25T10:54:44Z Organizational Performance with In-group and Out-group Leaders : An Experiment Ibanez, Marcela Schaffland, Elke PUBLIC GOODS GAME GROUP MEMBERSHIP LEADERSHIP EXPERIMENT ORGANIZATIONAL PERFORMANCE COOPERATION In this paper, we compare the performance of a homogeneous organization in which group members and the leader belong to the same group, with a heterogeneous organization in which the leader is an outsider. Using a modified public goods game in which leaders’ performance in a real effort task determines the marginal return to the public good we focus on the effect of shared group membership on: i) the effort of the leader in the real effort task, ii) cooperation of group members and iii) group members’ payoffs. When the leaders are selected randomly, we find that homogeneous groups tend to out-perform heterogeneous groups. This is due to lower performance of the out-group leader and not to differences in cooperation. This effect disappears when high-performance leaders are selected. High performance out-group leaders tend to over perform relative to in-group leaders, yet, there are no differences in cooperation once we control for the marginal incentives to invest in the public good. The results of our study have important implications for how organizations can deal with the arrival of out-group leaders. 2018-02-16T20:17:45Z 2018-02-16T20:17:45Z 2017-12-02 Journal Article Journal of Behavioral and Experimental Economics 2214-8043 http://hdl.handle.net/10986/29366 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	PUBLIC GOODS GAME GROUP MEMBERSHIP LEADERSHIP EXPERIMENT ORGANIZATIONAL PERFORMANCE COOPERATION
spellingShingle	PUBLIC GOODS GAME GROUP MEMBERSHIP LEADERSHIP EXPERIMENT ORGANIZATIONAL PERFORMANCE COOPERATION Ibanez, Marcela Schaffland, Elke Organizational Performance with In-group and Out-group Leaders : An Experiment
description	In this paper, we compare the performance of a homogeneous organization in which group members and the leader belong to the same group, with a heterogeneous organization in which the leader is an outsider. Using a modified public goods game in which leaders’ performance in a real effort task determines the marginal return to the public good we focus on the effect of shared group membership on: i) the effort of the leader in the real effort task, ii) cooperation of group members and iii) group members’ payoffs. When the leaders are selected randomly, we find that homogeneous groups tend to out-perform heterogeneous groups. This is due to lower performance of the out-group leader and not to differences in cooperation. This effect disappears when high-performance leaders are selected. High performance out-group leaders tend to over perform relative to in-group leaders, yet, there are no differences in cooperation once we control for the marginal incentives to invest in the public good. The results of our study have important implications for how organizations can deal with the arrival of out-group leaders.
format	Journal Article
author	Ibanez, Marcela Schaffland, Elke
author_facet	Ibanez, Marcela Schaffland, Elke
author_sort	Ibanez, Marcela
title	Organizational Performance with In-group and Out-group Leaders : An Experiment
title_short	Organizational Performance with In-group and Out-group Leaders : An Experiment
title_full	Organizational Performance with In-group and Out-group Leaders : An Experiment
title_fullStr	Organizational Performance with In-group and Out-group Leaders : An Experiment
title_full_unstemmed	Organizational Performance with In-group and Out-group Leaders : An Experiment
title_sort	organizational performance with in-group and out-group leaders : an experiment
publisher	Elsevier
publishDate	2018
url	http://hdl.handle.net/10986/29366
_version_	1764469166127972352

Organizational Performance with In-group and Out-group Leaders : An Experiment

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