LEADER CAPABILITIES, SUCCESSION, AND COMPETITIVE CONTEXT - A STUDY OF PROFESSIONAL BASEBALL TEAMS

Using a sample of major league baseball teams, this study provides evidence that leader (field manager) ability and experience are positively associated with subsequent performance for ongoing field managers. Following a succession event, however, only the ability of the new field manager, as measured by his prior record, is important to subsequent performance. We hypothesize that the level of rivalry will be importantly associated with a new field manager's ability to improve subsequent performance, because it is easier to improve in a low-rivalry context. Contrary to the hypothesis, however, our analysis indicates that the abilities of the new field manager are even more important when the team is competing in a high-rivalry context, and tend to matter little in a low-rivalry context.