A multilevel perspective on faultlines: Differentiating the effects between group- and organizational-level faultlines.

Abstract

Integrating the literature on faultlines, conflict, and pay, we drew on the basic principles of multilevel theory and differentiated between group- and organizational-level faultlines to introduce a novel multilevel perspective on faultlines. Using multisource, multilevel data on 30 Major League Baseball (MLB) teams, we found that group-level faultlines were negatively associated with group performance, and that internally focused conflict exacerbated but externally focused conflict mitigated this effect. Organizational-level faultlines were negatively related to organizational performance, and were most harmful in organizations with high levels of compensation. Implications for groups and teams in the sports/entertainment and other industries are discussed.

Buffering Against the Detrimental Effects of Demographic Faultlines: The Curious Case of Intragroup Conflict in Small Work Groups

“…Bezrukova et al. () recently proposed conflict as a moderator of the faultline–performance outcome and found evidence supporting their social identity arguments in a multilevel study of major league baseball teams. We argue and find evidence that conflict can moderate the faultline–performance relationship, offering opposite predictions, based on the CEM.…”

“…The literature has generally shown that faultlines impede group performance as the emergence of subgroups can lead to ingroup–outgroup competition, restricted communication, and decreased information sharing (Bezrukova et al., ; Homan et al., ; Jehn & Bezrukova, ; Lau & Murnighan, ; Sawyer, Houlette, & Yeagley, ; Thatcher et al., ). In recent years, research on faultlines and subgroups has unpacked these basic relationships by uncovering a variety of faultline types, measures, mediators, moderators, and consequences (Bezrukova et al., , ; Shaw, ; Thatcher et al., ). As a full review of faultline theory is beyond the scope of this manuscript, we develop our argument for conflict as a moderator focusing on research about bridging faultlines, or lessening negative effects on group performance.…”

“…In a recent publication, Bezrukova and colleagues propose conflict as a moderator of the faultline–performance relationship (Bezrukova et al., ). In line with social categorization theory, the authors propose that within‐team conflict will exacerbate negative effects of faultlines but externally directed conflict at other levels can make the “team” identity salient and bridge subgroups.…”

“…Subgroup formation can hinder group performance through increased intragroup competition and decreased communication, information sharing, and motivation to contribute (Bezrukova, Thatcher, Jehn, & Spell, ; Lau & Murnighan, ; Thatcher, Jehn, & Zanutto, ; Thatcher & Patel, ). Yet researchers have uncovered several internal mechanisms that can bridge faultline subgroups, lessening their negative impact on group process and performance, including team identification, goal structure, shared objectives, and cultural alignment (Bezrukova, Spell, Caldwell, & Burger, ; Van Knippenberg, Dawson, West, & Homan, ).…”

The Role of Interacting Diversities and the Location of Faultlines in Inter-Organizational Teams

“…We followed the approach of previous research on team diversity (e.g., Bezrukova, Spell, Caldwell, & Burger, 2016;Bishop Smith & Hou, 2015) and used objective sports data to test our theory. We did so because archival sports data allow the study of phenomena through natural experiments (Kahn, 2000), whereby issues of endogeneity are mitigated due to the level of control (Kocher, Lenz, & Sutter, 2012).…”