Superstar Jinx: Gaining and Losing Status in Organizations

Abstract

Researchers have used the term Pareto principle to describe the fact that the majority amount of output can be attributed to a very small group of people – the superstars. Our goal is to understand how individuals gain and lose their superstar status internally (by staying in the same organization) and externally (switching from one organization to another). We believe that superstardom is a positional good, which is not defined by the absolute level of one’s performance, visibility or influence, but by relative standing among comparative referents. We empirically test the individual and organizational performance trajectory when superstars gain and lose status by using 10 years of Bundesliga data in Study 1. To extend the generalizability, we further build a mathematic model about gaining and losing superstar status in Study 2. We also uncover theoretical mechanisms behind the change of organizational and individual performance.