Cultural Diversity and Team Performance

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Cultural Diversity and Team Performance

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Title: Cultural Diversity and Team Performance
A Field Experiment
Author: Hoogendoorn, Sander; Van Praag, Mirjam
Abstract: One of the most salient and relevant dimensions of team heterogeneity is cultural back- ground. We measure the impact of cultural diversity on the performance of business teams using a eld experiment. Companies are set up by teams of undergraduate students in business studies in realistic though similar circumstances. We vary the cultural composition of otherwise randomly composed teams in a multi-cultural stu- dent population. Our data indicate that a moderate level of cultural diversity has no e ect on team performance in terms of business outcomes (sales, pro ts and pro ts per share). However, if at least the majority of team members is culturally diverse then more cultural diversity seems to a ect the performance of teams positively. Our data suggest that this might be related to the more diverse pool of relevant knowledge facilitating (mutual) learning within culturally diverse teams.
URI: http://hdl.handle.net/10398/9261
Date: 2016-01-04

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