star employees, value creation, value capture, resource based views, incomplete contract theory, compensation, human resource management
Star employees create disproportionate value for organizations. However, managing stars is decidedly difficult. Scholars have not yet appropriately addressed this practical problem. Much of the problem is interpreting our theoretical models that convey human capital from a static perspective. By combining incomplete contract theory with human capital research and theories of strategy, we show how existing theory can provide a framework for solving problems related to managing stars while also offering a platform for further research within the strategic human capital field. To do this, we recap extant theory and examine how stars create value for an organization by co-developing firm-specific while simultaneously developing general human capital. Second, we provide a practical dynamic value appropriation framework illustrating how the employer and the employee determine who captures the value stars create as they go through the employment life cycle.
Original Publication Citation
Morris, S., Alvarez, S., & Barney, J. Dancing with the Stars. Forthcoming. Academy of Management Perspectives
BYU ScholarsArchive Citation
Morris, Shad; Alvarez, Sharon A.; and Barney, Jay B., "Dancing with the Stars: The Practical Value of Theory in Managing Star Employees" (2020). Faculty Publications. 3675.
Academy of Management
Marriott School of Management
2020 Academy of Management. All rights reserved. This is the author's submitted version of this article. The definitive version can be found at https://journals.aom.org/doi/abs/10.5465/amp.2017.0223