IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v25y2021i07ns1363919621500821.html
   My bibliography  Save this article

Does Cultural Diversity Matter For Team Performance In Multinational Companies? An Analysis Of Conflict, Communication, Social Integration, Creativity And Satisfaction

Author

Listed:
  • SORNSAWAN OBSUWAN

    (Durham University Business School, Mill Hill Lane, Durham, DH1 3LB, UK)

  • DEEPAK CHANDRASHEKAR

    (#x2020;Faculty of Strategy, Indian Institute of Management Bangalore, Bannerghatta Road, Bengaluru – 560076, India)

  • SASCHA KRAUS

    (#x2020;Faculty of Strategy, Indian Institute of Management Bangalore, Bannerghatta Road, Bengaluru – 560076, India‡Free University of Bozen-Bolzano, Faculty of Economics & Management Piazza Università 1, 39100 Bolzano, Italy)

  • ALEXANDER BREM

    (#xA7;University of Stuttgart, Institute of Entrepreneurship and Innovation Science, Stuttgart, Germany5University of Southern Denmark, Mads Clausen Institute, Sønderborg, Denmark)

  • RICARDA BOUNCKEN

    (#xB6;University of Bayreuth, Chair of Strategic Management and Organization, Prieser Str. 2, 95440 Bayreuth, Germany)

Abstract

Team performance is key in each organisation. Hence, cultural effects in teams are a relevant matter of subject clarifying the ambiguous findings from previous research. With this background, we investigate how the macro-constructs of conflict, communication effectiveness, social integration, creativity and satisfaction interact with cultural diversity on team performance in an environment characterised by a largely homogeneous and ethnic workforce. We test our hypotheses on a sample of firms in Thailand. Our results indicate that creativity and satisfaction have a significant positive impact on team performance whereas cultural diversity has a significant positive impact on influencing conflict in a team-based environment. However, cultural diversity has no significant impact on communication effectiveness and social integration, and it has no significant impact on team performance.The key theoretical contributions from our study are that cultural diversity can contribute to conflict even in a team composition that is seemingly cohesive and homogeneous in nature. Further, our study establishes that creativity and satisfaction have a positive effect on team performance even in the context of a homogeneous and ethnically majority-based team. For the practitioners, the results of the study indicate that initial actions need to be taken by the leaders of multicultural teams as they create teams to avoid the initial pitfalls due to conflict.

Suggested Citation

  • Sornsawan Obsuwan & Deepak Chandrashekar & Sascha Kraus & Alexander Brem & Ricarda Bouncken, 2021. "Does Cultural Diversity Matter For Team Performance In Multinational Companies? An Analysis Of Conflict, Communication, Social Integration, Creativity And Satisfaction," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 25(07), pages 1-40, September.
    • Handle: RePEc:wsi:ijimxx:v:25:y:2021:i:07:n:s1363919621500821
    DOI: 10.1142/S1363919621500821
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919621500821
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919621500821?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mercedes Rubio-Andrés & Mª Ramos-González & Miguel Ángel Sastre-Castillo, 2022. "Driving innovation management to create shared value and sustainable growth," Review of Managerial Science, Springer, vol. 16(7), pages 2181-2211, October.
    2. Dirrler Phyllis & Podruzsik Szilard, 2023. "Conflict Costs in National and International Business: A Comparative Analysis," Foundations of Management, Sciendo, vol. 15(1), pages 209-224, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:25:y:2021:i:07:n:s1363919621500821. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.