Dancing with the Stars: The Practical Value of Theory in Managing Star Employees

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 issue pertains to interpreting our theoretical models that convey human capital from a static perspective. By combining incomplete contract theory with research and theories strategy, we show how existing can provide framework solving problems related while also offering platform further within strategic field. To do this, recap extant examine an organization by codeveloping firm-specific simultaneously developing general capital. In addition, dynamic appropriation illustrate employer employee determine who captures as they go through employment life cycle.