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Demographic faultlines (i.e., potential subgroup splits based on demographic attributes) have been argued to have effects over and above those of diversity. Yet, faultlines, much like diversity, do not seem to have positive or negative effects on performance per se, but to be affected by contextual variables as well as intermediate outcomes, such as relationship conflict. Relationship conflicts, a major threat to teamwork, are particularly likely to arise between subgroups. Thus, with the objective to shed some light on why and how exactly faultlines impact group outcome, we investigate the effect of faultline strength and distance on performance through relationship conflict as well as the effect of faultline strength on performance via relationship conflict, contingent on the level of faultline distance. To test our hypotheses we used data gathered in a laboratory setting with 267 graduate students. Results provide strong support for the extension of the faultline model.

Faultline literature has been extensively examined for its effect on various outcomes. Barring a few exceptions, this research has primarily inferred the adverse impact of such splits. The purpose of this theoretical paper is to assert that these divisions can also be formed based on positive psychological capacities, which will cause a divide, but eventually help increase performance.

This paper offers a conceptual model that links employee psychological capital with the faultline literature and suggests its impact on team performance. It also explores the positive moderating effect of time and team goal orientation.

The study asserts that there will be an initial divide, but the positive faultlines will improve team performance. Several propositions are formulated that provide the opportunity for further examination.

This paper makes a contemporary and important conceptual contribution to the faultline literature by proposing a new notion: “positive faultlines.” To view the effect of faultlines from a positive perspective, a pioneering endeavor is made to explore the impact of employees’ psychological capital in teams. By integrating the faultline literature with positive organizational behavior, this study offers an alternative line of thinking on team compositional dynamics.

Combining the punctuated equilibrium theory with the faultline theory, the purpose of this paper is to focus on member change of strategic core role holders in teams.

The authors test the model using data from 30 National Basketball Association teams covering 11 regular seasons, carrying out regression analyses.

This research illustrates how different types of job-related skills of core role holders that involved in member change might influence the team performance loss, and how team demographic faultlines would serve as a moderator.

This research demonstrates that punctuational change in a team is not always bad, flux in coordination and team performance loss could be avoided by staffing strategic core role based on specific job-related skill levels and manipulating team composition based on demographic attributes.

The research model initially provides an integrated perspective of member change, core role and faultline theory to explain the team process for punctuational change.

This study aims to focus on three types of team faultlines (separation-based faultlines, variety-based faultlines and disparity-based faultlines) and discuss the different ways through which their configurational properties (faultline strength and faultline distance) affect team performance.

The authors adopted panel data regression analysis to test the model. Panel data of Chinese provincial party-government top cadres teams that covers 30 provincial areas from 2007 to 2012 were collected for data analyses.

The results revealed that separation-based faultline strength was negatively related to team performance, variety-based faultline strength had a U-shape relationship with team performance and disparity-based faultline strength had an inversed U-shape relationship with team performance. In addition, separation-based and disparity-based faultline distances served as moderators enhancing the curvilinear relationship between faultline strength and team performance. Notably, variety-based faultline distance failed to exaggerate the U-shape relationship between variety-based faultline strength and team performance; however, the relationship changed based on different levels of variety-based faultline distance.

This study discussed team configurations based on three types of faultlines by comparing differences between team configurations reflected by diversity and faultline strength. Settled in Chinese political context, this study empirically tested the interaction effects between faultline strength and distance on team performance.

The purpose of this paper is to examine the curvilinear relationship between team informational faultlines and team creativity and the moderating effects of team humble leadership on the relationship.

The multisource and longitudinal survey data were collected from 85 teams. The authors conducted linear regression analyses to analyze the data.

The results indicate that the relationship between team informational faultlines and team creativity is inverted U-shaped and such relationship is stronger in teams with low levels of humble leadership.

The research reconciles the mixed findings in prior research and enhances our understanding of the functionality of informational faultlines.

Team managers should seek optimal levels of informational faultlines and make diversity coexist with similarity when assembling a new working group so as to utilize the benefits of team composition diversity and fuel collective creativity. Team leaders should learn humble leadership skills to encourage open communication.

The research is the first to adopt and build on the social information processing (SIP) perspective to explain the curvilinear relationship between team informational faultlines and team creativity.

The purpose of this paper is to explore the effect of a team’s personality faultlines on entrepreneurial performance. Additionally, this paper verifies the moderating effect of shared leadership on the connection between the two varies. The authors focus on the upper echelons theory and social identity theory as well as personality faultlines in entrepreneurial teams.

An online survey was conducted using data collected in China. Data from 618 members from 144 new venture teams were collected to examine the authors’ hypothesis.

The authors find a U-shaped relationship between the strength of entrepreneurial teams' personality-faultline and entrepreneurial performance. Additionally, shared leadership negatively moderates this U-shaped relationship. Specifically, when the entrepreneurial team has a high level of shared leadership, both the positive and negative relationships between the strength of the personality faultlines and entrepreneurial performance are weaker.

The research offers important theoretical and practical implications for the formation of entrepreneurial teams.

With an increasingly diverse workforce, teams need to handle differences among team members and be aware of the impact these differences have on team meetings. As meetings are strongly shaped by team member interactions, communication between team members is central to meeting success. In diverse teams, effective communication and information sharing is even more crucial than in homogeneous groups due to distinct perspectives and knowledge that group members bring to a team. However, effective communication is also more challenging in groups with diverse members than in homogeneous groups. Especially when there is a strong faultline, that is, when multiple attributes align and teams fall into subgroups, communication within the whole team is impaired and might only take place within subgroups. In this chapter, the authors discuss the role of faultlines in meeting interactions and turn to subgroup formation and its impact on interaction patterns within teams. The authors see intersubgroup communication as an important process that links faultlines to meeting outcomes such as performance or satisfaction. By spanning research areas connecting faultline and meeting research, the authors provide scholars with important research questions to be examined in the future. The authors further introduce a new measure of intersubgroup communication that provides insights into dynamics between subgroups. By relating intersubgroup communication to overall communication within a meeting and taking team size as well as different subgroup constellations into account, this measure facilitates studying intersubgroup communication in meetings. The authors provide formulas that scholars could apply to their research.

The inconsistent results shown in previous group faultline research have created a need for investigating the underlying mechanisms of the faultline's effects. This study focuses on clarifying the competing mediating roles of information diversity and team conflict in the nonlinear relationship between board faultlines (BF) and decision quality.

This study is empirically tested with the questionnaire data from 105 Chinese listed companies.

This study finds: (1) an inverted U-shaped curve relationship between BF and board decision quality and (2) that the joint mediating effect of team conflict and information diversity leads to the inverted U-shaped curve relationship between BF and decision quality. Specifically, BF shows a U-shaped curve relationship with team conflict and an inverted U-shaped curve relationship with information diversity. Either too weak or too strong faultlines will inhibit the positive effects of information diversity and amplify the negative effects of team conflicts, leading to low-quality decisions.

This study contributes to the research on: (1) board governance as it clarifies the effect of BF on the board decision-making process and its quality, which helps to open the black box of board decision-making and (2) group faultlines as it reveals how information diversity and team conflict can play a joint mediating role in the functioning of team faultlines.

This study aims to explore whether top management team (TMT) faultlines affect corporate digitalization and what the impact mechanism is, thus effectively promoting the digital transformation of enterprises from the perspective of optimizing TMT structure.

This study sampled companies that were listed in China between 2011 and 2020. Using the two-way fixed effect model, it empirically tests the impact of TMT faultlines on the digital transformation of enterprises.

TMT task-related faultline significantly positively impacts enterprise digital transformation, while the bio-demographic faultline has a significant negative effect. The regulatory role played by Chief Executive Officer (CEO) power intensity in the relationship between the bio-demographic faultline and digital transformation is a negative one. The above relationship is strongly influenced by industry technical sophistication, corporate location and listing board.

The research has promoted the development of the upper echelons theory in the context of digitalization. Moreover, it enlightens the research of digital transformation’s influencing factors and mechanisms. However, no suitable mediating variable was found.

This research has significant implications for managers to optimize the internal structure of the TMT according to different enterprises’ business strategies in order to establish an efficient management team.

This study provides a new theoretical framework for TMT’s role in enterprise digital transformation. Further, it makes a beneficial exploration of the boundary and situational conditions of their relationship.

This study empirically examines the curvilinear relationship between top management team task-related demographic faultlines and over-investment, as well as how biodemographic faultlines and industrial environment moderate the curvilinear relationship between task-related demographic faultlines and over-investment.

The study designs the panel data from the listed companies of China's growth enterprises board (GEB) (set up by Shenzhen Stock Exchange in 2009) in the period 2011–2016 and uses hierarchical regression analysis and grouping regression analysis in exploring the curvilinear relationship with the variables involved.

The study provides empirical insights into the relationship on top management team (TMT) task-related demographic faultlines and over-investment, as well as how biodemographic faultlines and industrial environment moderate the relationship between task-related demographic faultlines and over-investment. It suggests that the relationship between task-related demographic faultlines and over-investment is significantly inverted-U. Furthermore, biodemographic faultlines and industrial environment can strengthen the inverted-U relationship between TMT task-related demographic faultlines and over-investment.

The study investigates the influence of task-related demographic faultlines on firm over-investment. The sample is restricted to the listed companies on GEM in China and limited in size. It is also not concerned with the cross-culture contrastive analysis between the Chinese- and Western-listed companies.

The findings suggest that strong/weak TMT task-related demographic faultlines is beneficial in promoting rational investment, but medium TMT task-related demographic faultlines may lead to over-investment.

The study within the crossed-categorization theory, the study provides a contemporary research path by moderating biodemographic faultlines and industrial environments to explain the long-ignored impact of TMT faultlines within a new perspective of firm investment efficiency with a recent significant sample of new emerging countries (e.g. China).