The Role of Resources in the Success or Failure of Diverse Teams: Resource Scarcity Activates Negative Performance-Detracting Resource Dynamics in Social Category Diverse Teams

Increasing the social category diversity of work teams is top of mind for many organizations. However, such efforts may not always be sufficiently resourced, given the numerous resource demands facing organizations. In this paper, we offer a novel take on the relationship between social category diversity and team performance, seeking to understand the role resources may play in both altering and explaining the performance dynamics of diverse teams. Specifically, our resource framework explains how the effects of social category diversity on team performance can be explained by intrateam resource cognitions and behaviors and are dependent on team resource availability. We propose that in the face of scarcity in a focal resource (i.e., budget), diverse (but not homogenous) teams generalize this scarcity perception to fear that all resources (i.e., staff, time, etc.) are scarce, prompting performance-detracting power struggles over resources within the team. We find support for our model in three multimethod team-level studies, including two laboratory studies of interacting teams and a field study of work teams in research and development firms. Our resource framework provides a new lens to study the success or failure of diverse teams by illuminating a previously overlooked danger in diverse teams (negative resource cognitions (scarcity spillover bias) and behaviors (intrateam power struggles)), which offers enhanced explanatory power over prior explanations. This resource framework for the study of team diversity also yields insight into how to remove the roadblocks that may occur in diverse teams, highlighting the necessity of resource sufficiency for the success of diverse teams.