Talent and time together : The impact of human capital and overlapping tenure on unit performance

Purpose – This study aims to directly examine the relationships between various aspects of human capital and relationship stability (overlapping tenure) and team performance. Additionally, this study aims to contribute to strategic human resource management and human capital research by placing an emphasis on human resources (i.e. people) and their influence on performance. Design/methodology/approach – The direct and interaction effects of human capital and overlapping tenure on performance are examined with a sample of 230 National Collegiate Athletic Association (NCAA) men's basketball teams in the 2006‐2007 season. A third party measure of basketball players' human capital is aggregated to the team level to examine its relationship with team performance. Additionally, the human capital of the head coach of each team and its relationship with team performance is examined. Relationship stability is assessed by measuring overlapping tenure, which is defined as the amount of time individuals have worked together towards a common performance outcome. Team level overlapping tenure among players and the overlapping tenure between players and their head coach are measured and their relationships with team performance are tested. Finally, the interaction effect of players' human capital and players' overlapping tenure on team performance is examined. Hierarchical regression is used to test each hypothesis. Findings – The results find a positive relationship between both players' and coaches' human capital and performance. Also, players' overlapping tenure is positively related to performance. Lastly, the interaction between players' human capital and players' overlapping tenure is not significantly related to performance. Originality/value – There has been a growing interest in human resources (i.e. people) as a source of competitive advantage. This study employs a unique sample of NCAA men's basketball teams to theoretically develop and empirically test relationships among human capital, overlapping tenure, and performance. Different from previous studies, an objective, third party measure of human capital and measurements of overlapping tenure are utilized and their direct and interaction effects on team performance are examined. The results of this study point to the importance of acquiring and retaining high levels of human capital.