Management Science
Adaptation on rugged landscapes
Management Science
Design Rules: The Power of Modularity Volume 1
Design Rules: The Power of Modularity Volume 1
Integrating Knowledge in Groups: How Formal Interventions Enable Flexibility
Organization Science
Imitation of Complex Strategies
Management Science
Learning Negotiation Skills: Four Models of Knowledge Creation and Transfer
Management Science
As the Twig Is Bent: How Group Values Shape Emergent Task Interdependence in Groups
Organization Science
The Dual Role of Modularity: Innovation and Imitation
Management Science
Understanding the Role of Worker Interdependence in Team Selection
Organization Science
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This study uses data from the National Basketball Association to explore organizational mechanisms that affect the division of firm surplus in human-capital-intensive activity. It builds on the idea that reciprocal interdependence among team members creates the potential for complementarity. Complementarity, in turn, translates into higher firm surplus. The division of this surplus is subject to bargaining between the firm owner and labor. We argue that when complementarity increases, the firm owner's share of surplus will grow if interdependence among team members is symmetric. Furthermore, we identify three levers that make complementarity amenable to managerial design: the nature of interaction among team members, the relative dominance of team members, and the composition of a team. We find that greater interaction among team members and higher recruitment of team-oriented individuals are associated with increased complementarity, whereas dominant team members are associated with reduced complementarity. The study contributes to the literature on organization design by extending its implications to the division of surplus in human-capital-intensive activity.