Keywords

star employees, value creation, value capture, resource based views, incomplete contract theory, compensation, human resource management

Abstract

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

Document Type

Peer-Reviewed Article

Publication Date

2020

Publisher

Academy of Management

Language

English

College

Marriott School of Management

Department

Management

University Standing at Time of Publication

Associate Professor

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