The effects of team heterogeneity on a team’s win percentage are measured using panel data from the 2002-2008 National Basketball Association (NBA). Technology increases have allowed global firms the options of hiring international workers. This thesis shows the benefits and problems associated with employing a geographical diverse workforce in the NBA. The Herfindahl-Hirshman Index was used to measure team diversity for the 30 NBA teams, which is regressed against regular season win percentage. The original results were not significant, but further regressions showed that increases in HHI and diversity, led to higher win percentages.
Appendix to the Colorado College faculty meeting, Block 2, October 2014.