This study examines how organizational design adapts to performance feedback, focusing on the interplay of turnover, team composition, and shared experience in the dynamic context of the Venice Historical Regatta. Drawing on the behavioral theory of the firm, we explore how problemistic search mechanisms influence structural adjustments in response to deviations from aspiration levels. Specifically, we investigate the impact of prior performance on turnover rates and recruitment strategies in competitive team settings. Using archival data spanning 1950 to 2023 from the caorline race, we analyze the relationship between team performance, turnover, and the integration of recruits with shared experience. The findings reveal that teams performing below aspiration levels exhibit higher turnover and prioritize the recruitment of members with pre-existing shared experience. This targeted approach mitigates coordination challenges and fosters cohesion, facilitating rapid performance recovery. Conversely, teams meeting aspirations favor stability, minimizing turnover to preserve existing dynamics. Our results contribute to strategic management literature by illustrating the nuanced mechanisms through which performance feedback drives adaptive organizational design. These findings emphasize the trade-offs between stability and adaptation, offering insights into the strategic role of relational dynamics in problemistic search. Implications for organizational learning and team-based performance optimization are discussed.
