The team and its leader: Multilevel effects of network embeddedness on performance

The literature on team performance has largely ignored the embeddedness of a team in a larger network of peers over time. In this paper, we argue that team performance can be explained by the network position of the team leader, but also by the aggregate network position of other team members. Furthermore, we propose that the team leader’s influence on team performance is moderated by the embeddedness of the team in a larger collaboration network. To test our hypotheses, we study the network of French movie teams (comprising directors, producers, art directors, editors, and cinematographers) between 1996 and 2010. We find that the network position of the team leader – the movie director – has a U-shaped effect on team performance. Specifically, directors with either very cohesive or very sparse collaboration networks contribute most to team performance. Surprisingly, the effect is the opposite for teams. Teams embedded in collaboration networks that are neither very cohesive nor sparse have a positive effect on team performance. Finally, we find that the benefits of a network position of the team leader and the team reinforce each other. We conclude with implications for scholars and practitioners.