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Is diversity good or bad? Evidence from eSports teams analysis

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  • Petr Parshakov
  • Dennis Coates
  • Marina Zavertiaeva

Abstract

We use eSports data to construct an empirical model to measure the effect of diversity on team performance. Different kinds of diversities are considered, diversity of culture, diversity of language and diversity of skill. Our main results are that cultural diversity is beneficial for team performance: the absence of diversity reduces performance by 30%. However, language and experience diversity negatively affect results. Taking the difference in the results into account, we conclude that firms should not thoughtlessly maximize team diversity: different kinds of diversity have different integration and communication costs.

Suggested Citation

  • Petr Parshakov & Dennis Coates & Marina Zavertiaeva, 2018. "Is diversity good or bad? Evidence from eSports teams analysis," Applied Economics, Taylor & Francis Journals, vol. 50(47), pages 5064-5075, October.
    • Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5064-5075
    DOI: 10.1080/00036846.2018.1470315
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    Citations

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    Cited by:

    1. Jaume Garcia-Villar & Carles Murillo, 2018. "eSports: Profile of Participants, Complementarity with Sports and its Perception as Sport. Evidence From Sports Video Games," Working Papers 1059, Barcelona School of Economics.
    2. Benti, Behailu Shiferaw & Stadtmann, Georg, 2023. "Sports and eSports: A structural comparison based on the B/Orders in Motion framework," Discussion Papers 427, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    3. Beine, Michel & Peracchi, Silvia & Zanaj, Skerdilajda, 2023. "Ancestral diversity and performance: Evidence from football data," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 193-214.
    4. Richard J. Paulsen, 2022. "Peer effects and human capital accumulation: Time spent in college and productivity in the National Basketball Association," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3611-3619, December.
    5. Niculaescu, Corina-Elena & Sangiorgi, Ivan & Bell, Adrian R., 2023. "Venture capital financing in the eSports industry," Research in International Business and Finance, Elsevier, vol. 65(C).
    6. Mariia Molodchik & Sofiia Paklina & Petr Parshakov, 2021. "Peer Effects on Individual Performance in a Team Sport," Journal of Sports Economics, , vol. 22(5), pages 571-586, June.
    7. Enzo Brox & Riccardo Di Francesco, 2024. "The Cost of Coming Out," Papers 2403.03649, arXiv.org, revised Jun 2024.
    8. Dennis Coates & Petr Parshakov & Sofia Paklina, 2020. "Do Managers Matter: Evidence From E‐Sports," Contemporary Economic Policy, Western Economic Association International, vol. 38(2), pages 304-312, April.
    9. Michel Beine & Silvia Peracchi & Skerdilajda Zanaj, 2021. "Genetic Diversity and Performance: Evidence from Fooball Data," CESifo Working Paper Series 9188, CESifo.
    10. Di Tang & Kim-wai Raymond Sum & Ruisi Ma & Wai-keung Ho, 2023. "Beyond the Screen: Do Esports Participants Really Have More Physical Health Problems?," Sustainability, MDPI, vol. 15(23), pages 1-14, November.
    11. Shenkman, Evgenia & Coates, Dennis & Chadov, Aleksei & Parshakov, Petr, 2022. "Team vs. individual tournament: An organizer's dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 476-492.
    12. Joost Bosker & Marc Gürtler, 2024. "The impact of cultural differences on the success of elite labor migration—Evidence from professional soccer," Annals of Operations Research, Springer, vol. 341(2), pages 781-824, October.
    13. Nicolas Scelles & Qi Peng & Maurizio Valenti, 2021. "Do the Peculiar Economics of Professional Team Sports Apply to Esports? Sequential Snowballing Literature Reviews and Implications," Economies, MDPI, vol. 9(1), pages 1-18, March.

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