Do ‘Boss Effects’ Exist in Japanese Companies? Evidence from Subordinate–Supervisor Matched Panel Data*

This article investigates whether supervisors can significantly enhance their subordinates' performance using a five-waves panel dataset from a medium-sized Japanese firm comprising around 400 employees. The dataset includes all regular non-managerial employees working in one manufacturing company. About 40 supervisors were matched to their subordinates, and the evaluation outcomes were used to evaluate the worker performance. The results showed that supervisor effects were heterogeneous, displayed a one-year lag, and lasted for two years. We proved the existence of the supervisor effect on current performance, by using current supervisor dummies or past supervisor dummies. Irrespective of the supervisor being switched, the effect of the past supervisor on workers’ current performance continues to exist. It was also found that these effects remained significant, even when workers were assigned new/different supervisors.