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A Tale of Two Hierarchies: Interactive Effects of Power Differentiation and Status Differentiation on Team Performance

Author

Listed:
  • Nicholas A. Hays

    (Broad College of Business, Michigan State University, East Lansing, Michigan 48824)

  • Huisi (Jessica) Li

    (Scheller College of Business, Georgia Institute of Technology, Atlanta, Georgia 30308)

  • Xue Yang

    (School of Business (Management), Nanjing University, Nanjing, Jiangsu 210093, China)

  • Jo K. Oh

    (School of Business, University of Connecticut, Storrs, Connecticut 06269)

  • Andrew Yu

    (Faculty of Business and Economics, University of Melbourne, Melbourne, Victoria 3000, Australia)

  • Ya-Ru Chen

    (S.C. Johnson School of Management, Cornell University, Ithaca, New York 14853)

  • John R. Hollenbeck

    (Broad College of Business, Michigan State University, East Lansing, Michigan 48824)

  • Bradley B. Jamieson

    (Broad College of Business, Michigan State University, East Lansing, Michigan 48824)

Abstract

Scholars have long wrestled with whether hierarchical differentiation is functional or dysfunctional for teams. Building on emerging research that emphasizes the distinction between power (i.e., control over resources) and status (i.e., respect from others), we aim to help reconcile the functional and dysfunctional accounts of hierarchy by examining the effects of power differentiation on team performance, contingent on status differentiation. We theorize that power differentiation is dysfunctional for teams with high status differentiation by increasing knowledge hiding, which undermines team performance. In contrast, we predict that power differentiation is functional for teams with low status differentiation by decreasing knowledge hiding, which improves team performance. In a field study, we found that power differentiation harmed team performance via knowledge hiding in teams with high status differentiation, but power differentiation had no effect on knowledge hiding or performance in teams with low status differentiation. In an experiment, we again found that power differentiation harmed team performance by increasing knowledge hiding in teams with high status differentiation. However, power differentiation improved team performance by decreasing knowledge hiding in teams with status equality. Finally, in a third study, we confirm the role of status differentiation in making team climates more competitive and examine the effect of power-status alignment within teams, finding that misalignment exacerbates the dysfunctional effects of power differentiation in teams with high status differentiation. By examining how power and status hierarchies operate in tandem, this work underscores the need to take a more nuanced approach to studying hierarchy in teams.

Suggested Citation

  • Nicholas A. Hays & Huisi (Jessica) Li & Xue Yang & Jo K. Oh & Andrew Yu & Ya-Ru Chen & John R. Hollenbeck & Bradley B. Jamieson, 2022. "A Tale of Two Hierarchies: Interactive Effects of Power Differentiation and Status Differentiation on Team Performance," Organization Science, INFORMS, vol. 33(6), pages 2085-2105, November.
    • Handle: RePEc:inm:ororsc:v:33:y:2022:i:6:p:2085-2105
    DOI: 10.1287/orsc.2021.1540
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    References listed on IDEAS

    as
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    Cited by:

    1. Zhizhen Yao & Shuaipu Chen & Shuai Zhang & Zhijian Zhang, 2025. "The balance between collaborative stability and performance in scientific funding project teams: the role of leader power," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-13, December.
    2. Rebecca Hinds & Melissa Valentine & Katherine DeCelles & Justin M. Berg, 2026. "Virtually Even: Status Equalizing in Distributed Organizations," Organization Science, INFORMS, vol. 37(1), pages 132-156, January.
    3. Butticè, Vincenzo & Natalicchio, Angelo & Messeni Petruzzelli, Antonio, 2025. "Looking at the Stars: Status shifts after collective achievements," Journal of Business Research, Elsevier, vol. 194(C).
    4. Sarah P. Doyle & Robert B. Lount, 2023. "Rising Above vs. Falling Below: When and Why Status Change Affects Interpersonal Helping in Workgroups," Organization Science, INFORMS, vol. 34(3), pages 1157-1183, May.
    5. Shiwen Luo & David Yoon Kin Tong, 2024. "Centralization or decentralization? Power allocation in team innovation management," PLOS ONE, Public Library of Science, vol. 19(10), pages 1-17, October.

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