Turnover and balance between exploration and exploitation processes for high-performance teams

Abstract

Purpose This paper aims to use macro-level theories based on the equilibrium between the exploration and exploitation of resources in an organisation to examine the association between turnover and performance through the analysis of a professional football (soccer) team in the Premier League, namely, Manchester United Football Club. Design/methodology/approach This study compiles historical data for 24 seasons of the Premier League between 1984-1985 and 2008-2009. Using these data, the authors define measures of performance and player turnover. Findings The results show the existence of an inverted U-shaped relationship between exploration and exploitation (turnover processes) and group efficiency under certain conditions, such as the number of work systems considered and the period during which the level of turnover is calculated. Originality/value Most research on employee turnover suggests that reductions in turnover have a positive effect on the efficiency of the organisation. However, the present study suggests that worker turnover can be analysed using theories based on the equilibrium between the processes of resource exploitation and exploration, especially for high-performance work groups. These theories predict an inverted U-shaped relationship between turnover and performance, which has been identified through empirical analysis.