Impact of team diversity and conflict on project performance in Indonesian start-ups

Abstract

Purpose: Based on social identity and information/decision-making theories, in this study, we developed and empirically verified a fresh theoretical model for the possible mediating effect of emotional and task conflicts on the associations between diversity (work, social, and ideological) and project performance. Design/methodology/approach: A survey was conducted of 68 Indonesian start-up firms, which achieved a 57.6% response rate. In total, 102 Indonesian project teams participated. Multiple team members were questioned regarding their respective teams, for a total of 395 individual respondents. An aggregation protocol was utilized to establish team-level datasets. The partial least squares (PLS) method was utilized to test our hypotheses. Findings: The findings suggest a detrimental effect on team performance of heightened ideological polarization as indicated by emotional conflict. Moreover, work diversity was found to positively affect task conflict, but not team performance. Possible moderating variables such as cultural factors may lessen the impact. Research limitations/implications: This study offers a fresh theoretical model pertaining to diversity, conflict, and performance. It also offers unique empirical evidence with which to examine theoretical propositions within the context of Indonesian start-ups. The sample size is rather limited for a confirmatory study even though it is substantially larger than similar past studies. Practical implications: The findings offer practical insights for start-ups to improve their project performance by consideration of the intricate association between aspects of team diversity and conflict. Originality/value: This study extends contemporary knowledge regarding diversity by its focus on the project context of Indonesian start-ups.