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Organizational Demographic Faultlines: Their Impact on Collective Organizational Identification, Firm Performance, and Firm Innovation

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  • Ulrich Leicht‐Deobald
  • Hendrik Huettermann
  • Heike Bruch
  • Barbara S. Lawrence

Abstract

In this study, we seek to understand the consequences of demographic faultlines at the organizational level. Drawing from the faultline and cross‐categorization literature, we suggest that organizational demographic faultlines (based on age and gender) have the potential to either reduce or enhance employees’ collective organizational identification and, thereby, indirectly influence firm performance and innovation. Whether organizational demographic faultlines have detrimental or beneficial effects depends on the functional heterogeneity within faultline‐based demographic subgroups, where heterogeneity is defined as the extent to which subgroup members belong to different functional departments. We theorize that this functional heterogeneity alters the degree of social integration between demographic subgroups. Results from a multisource field study of demographic faultlines among 5,495 employees in 82 small and medium‐sized firms (

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  • Ulrich Leicht‐Deobald & Hendrik Huettermann & Heike Bruch & Barbara S. Lawrence, 2021. "Organizational Demographic Faultlines: Their Impact on Collective Organizational Identification, Firm Performance, and Firm Innovation," Journal of Management Studies, Wiley Blackwell, vol. 58(8), pages 2240-2274, December.
    • Handle: RePEc:bla:jomstd:v:58:y:2021:i:8:p:2240-2274
    DOI: 10.1111/joms.12747
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    3. Corinne Post & Daniel Muzio & Riikka Sarala & Liqun Wei & Dries Faems, 2021. "Theorizing Diversity in Management Studies: New Perspectives and Future Directions," Journal of Management Studies, Wiley Blackwell, vol. 58(8), pages 2003-2023, December.

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