Unlocking the performance potential of functionally diverse teams: The paradoxical role of leader mood

In a multisource, lagged design field study of 66 consulting teams, we investigated the role of leader mood in unlocking the performance potential of functionally diverse teams. In line with our hypotheses, we found that, given high levels of leader positive mood, functional diversity was positively related to collective team identification. In contrast, given high levels of l

Managing diverse teams by enhancing team identification

Although diversity provides a greater pool of knowledge and perspectives, teams often do not realize the potential offered by these additional informational resources. In this study, we develop a new model seeking to explain when and how teams that are diverse in terms of educational background utilize the afforded informational variety by engaging in deeper elaboration of task-relevant information. We found that collective team identification moderated the rel

The Preventative Benefit of Group Diversification on Group Performance Decline

Integrating the open systems perspective of groups and the contingency approach to diversity, we study how group diversification (i.e. a process in which a group becomes more diverse over time as members join and/or leave the group) affects group performance change in an adverse task environment characterized with uncertainty and risks for failure. We argue that diversification benefits performance by reducing group performance decline in adversity. Group size increase, however, attenuates this preventative benefit of group diversification. Focusing on organizational tenure and gender, we studied 279 sales groups (3,277 individuals) in a large German financial consulting company from 2004 to 2008. In this period, a national legislative change prompted the company to withdraw its star product from the market and presented adversity to the sales groups. Results from latent growth models (LGMs) overall support our arguments. This research extends the (conditional) beneficial view of diversity from a static theoretical space about groups’ being diverse to a dynamic one about groups’ becoming diverse

Entrepreneurs’ achieved success: developing a multi-faceted measure

Firm performance is typically measured via objective financial indicators. However, researchers increasingly acknowledge that entrepreneurs do not measure their success solely in financial terms but that a range of often subjective indicators matter to them. This article contributes to the debate on entrepreneurial performance by studying how entrepreneurs assess their achieved success. ‘Entrepreneurs’ achieved success’ was conceptualized as a multi-faceted construct that includes entrepreneurs’ self-reported achievement of firm performance, workplace relationships, personal fulfilment, community impact, and personal financial rewards. It was measured via the Subjective Entrepreneurial Success–Achievement Scale (SES-AS). Over the course of three studies (N = 390) the factorial structure of ‘entrepreneurs’ achieved success’ was established and largely replicated in two cultures. Based on a nomological network, we documented relationships among ‘entrepreneurs’ achieved success’, quasi-objective indicators of firm performance, and entrepreneurs’ financial satisfaction, creativity, and health. Based on our research, we propose a new conceptual framework to study performance in the context of entrepreneurship. This framework acknowledges both the success criteria that entrepreneurs wish to achieve and those that they actually achieve, and extends our understanding of firm performance

Managing diverse teams by enhancing team identification: The mediating role of perceived diversity

Although diversity provides a greater pool of knowledge and perspectives, teams often do not realize the potential offered by these additional informational resources. In this study, we develop a new model seeking to explain when and how teams that are diverse in terms of educational background utilize the afforded informational variety by engaging in deeper elaboration of task-relevant information. We found that collective team identification moderated the relationship between educational team diversity and elaboration of task-relevant information, such that under high (low) levels of team identification, educational diversity was positively (negatively) related to information elaboration. As expected, this moderating effect was shown to be mediated simultaneously through two different types of perceived team diversity. We found that the negative path was mediated through a perceived diversity measure reflecting a split into subgroups, whereas the positive path was mediated through a perceived diversity measure reflecting perceived educational heterogeneity. Taken together, this study contributes to the team diversity literature by shedding light on the important role of collective team identification in unlocking the potential of objective educational team diversity, by uncovering the underlying mechanisms accounting for this effect, and by demonstrating the usefulness of distinguishing between different types of perceived diversity

From being diverse to becoming diverse:a dynamic team diversity theory

On the basis of the literature of open systems and team diversity, we present a new dynamic team diversity theory that explains the effect of change in team diversity on team functioning and performance in the context of dynamic team composition. Building upon the conceptualization of teams as open systems, we describe the enlargement and decline of team variety, separation, and disparity through member addition, subtraction, and substitution. Then, focusing on diversity enlargement, we theorize the contemporaneous and lasting effects of team diversity change on team performance change and on team processes and states leading to them. Dynamic team diversity theory expands the focus of team diversity research from teams' being more diverse than others to teams' becoming more diverse than before. It aims to advance team diversity research to be better aligned with the organizational reality of dynamic team composition. We also discuss methodological considerations in subsequent empirical testing of the theory and highlight how the theory and future research may help to guide organizational practice in recomposing work teams

On the same side of the faultline : inclusion in the leader's subgroup and employee performance

Extending theory on faultlines and subgroups, we argue that faultlines splitting a team into homogeneous subgroups can have different effects on team members' individual performance, depending on different intra-subgroup processes. Specifically, we propose that the effect of faultline strength on individual performance depends on whether a team member's subgroup includes the team leader. Building on the notion of faultline triggers, we further propose that organizational crises exacerbate this interaction because they make social support by the team leader especially important. We tested these assumptions with objective performance data collected over a period of four years from 3263 financial consultants (325 teams) while controlling for the effects of relational demography. Results showed that in teams with strong faultlines, consultants' performance decreased to a lesser extent in crisis years if the consultants shared a subgroup with their team leader. Thus, faultlines had different effects on team members from different subgroups