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R&D Team Diversity and Performance in Hypercompetitive Environments

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Hoisl,  Karin
MPI for Innovation and Competition, Max Planck Society;

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Citation

Hoisl, K., Gruber, M., & Conti, A. (2017). R&D Team Diversity and Performance in Hypercompetitive Environments. Strategic Management Journal, 38(7), 1455-1477. doi:10.1002/smj.2577.


Cite as: https://hdl.handle.net/11858/00-001M-0000-002B-098B-E
Abstract
This article examines the effects of an R&D team's composition on its performance outcomes in hypercompetition. The fundamental feature of firms in hypercompetitive settings is that they are constantly challenged to improve their competitiveness in a relentless race to outperform one another. Analyzing a unique data set from the Formula 1 motorsport racing industry, we find an inverse U-shaped relationship between team diversity in task-related experience and performance an important result that diverges from well-established theories developed in more stable environments. Fundamentally, we show that the role of R&D team experience diversity varies depending on the size of the organizations in which R&D teams operate. While we find a moderating effect for firm age, this effect is not as robust as that of firm size.