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Group power structure, inter-subgroup cross-dependency, and work group performance

In this paper, we examine group power structure and intragroup process with a focus on demographic faultline and subgroups. Specifically, we investigate the effects of group faultline, power imbalance, and cross-dependency between subgroups on overall group performance. Drawing on mutual dependence theory, we develop a new construct of cross-dependency, which refers to dependence between subgroups across different resources. We also examine the moderating effect of LMX differentiation. Using data from 50 work teams from a manufacturing company in Korea, we found that group faultline itself did not have a significant impact on group performance. Instead, perceived power imbalance between subgroups was negatively associated with group performance. Consistent with our expectation, cross-dependency between subgroups in task-advice and friendship networks had a positive effect. Lastly, LMX differentiation exacerbated the negative effect of power imbalance and mitigated the positive effect of cross-dependency. We discuss implications of our findings for group faultline and subgroup theory to better understand the positive potential of subgroups and inter-subgroup process.