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Team size and diversity

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  • Álvarez Pereira, Brais
  • Aman-Rana, Shan
  • Delfino, Alexia

Abstract

We analyze the relationship between performance, team diversity and size. We first propose a model with knowledge spillovers in production, which predicts that the effect of a diverse team member – relative to the impact of a non-diverse team member – increases with team size. We experimentally test the model by randomly assigning students to solve knowledge questions in teams of different sizes, with or without a person with a diverse knowledge set. In line with the model, we find that the benefit of having a diverse rather than a same-skill colleague is greater in larger relative to small teams. These results have implications for how organizations can design their teams to maximize knowledge flows and performance.

Suggested Citation

  • Álvarez Pereira, Brais & Aman-Rana, Shan & Delfino, Alexia, 2024. "Team size and diversity," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 924-948.
    • Handle: RePEc:eee:jeborg:v:224:y:2024:i:c:p:924-948
    DOI: 10.1016/j.jebo.2024.04.004
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    More about this item

    Keywords

    Gender; Diversity; Team performance; Information; Communication;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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