The preventative benefit of group diversification on group performance decline: An investigation with latent growth models
Li, Jia Shemla, Meir Wegge, Jürgen
Li, Jia
Shemla, Meir
Wegge, Jürgen
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2021
Journal
Journal of Organizational Behavior
Book
Publication Volume
42
Publication Issue
3
Publication Begin page
332
Publication End page
348
Publication NUmber of pages
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Abstract
ntegrating 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. We argue that diversification benefits performance by reducing group performance decline in times of adversity. Group size increase, however, attenuates this preventative benefit of group diversification. Focusing on organizational tenure and gender, we studied 279 sales groups (3277 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 group being diverse to a dynamic one about group becoming diverse
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Keywords
Change, Gender, Group Diversity, Group Performance, Organizational Tenure