Reconciling Conflicting Results of Cultural Diversity’s Effect on Project Team Performance: A Quasi-Experimental Examination

Abstract

Guided by the Categorization-Elaboration Model, we developed and tested a model to reconcile the conflicting results of cultural diversity’s influence on team performance. Previous theory and studies have inconsistent arguments and evidence regarding cultural diversity’s effects on team performance. We recognize that member cultural diversity is one possible influence on the variety and meanings of messages generated within groups, and the messages’ meanings may then affect performance. Work-related information sharing, including information sharing openness and uniqueness, is proposed as an underlying mechanism that translates the effect of cultural diversity to project team performance. Additionally, team cultural intelligence may moderate the relationship between cultural diversity and the information sharing processes. Participants constituted three types of teams: all American ( N = 32 teams), all Chinese ( N = 34 teams), and mixed ( N = 38 teams), in which team members finished a business problem identification task collectively. Results showed that in culturally diverse teams, high levels of cultural intelligence amplified the positive relationship between cultural diversity and information sharing uniqueness, which in turn led to higher team performance. Theoretical and practical implications are discussed.