Tackling The "Galacticos" Effect: Team Familiarity And The Performance Of Star-Studded Projects

Findings on the performance implications of assembling star-studded teams have remained rather mixed. We elaborate on the theoretical reasons for current inconclusive findings and delineate more precise boundary conditions for studying the relationship between stars and project-level performance. Specifically, we argue that lack of scholarly attention to team familiarity may account for empirical results' observed inconsistency. Our findings show that a history of past collaboration reduces the downsides of having too many stars within the same team. Previous interactions enhance coordination efforts by reducing conflicts among team members. We situate the analysis within the context of the Hollywood film industry over the period 1992-2004. The theoretical implications of the results are discussed.