Abstract

Confusion in previous studies over how and when cognitive diversity results in higher or lower performance has led to an examination of the influence of a range of moderator variables. Our study provides new theoretical insights into this field of research by extending the categorization–elaboration model (CEM) through an examination of the interaction effects of multiple convergent demographic diversities on information elaboration, team processes and creativity. Based on comparative fit and an in-group projection model of social categorization theory, the moderating influence of demographic faultlines and subgroup imbalance are also investigated. Using hierarchical regression analysis (HRA), empirical support from 453 team members nested within 91 teams across five organizations was found for the mediating role of team information elaboration on the relationship between cognitive diversity and team creativity. Furthermore, both demographic faultlines and subgroup balance were found to moderate the relationship between cognitive diversity and team information elaboration. Our study provides additional clarity concerning processes underlying the positive effects of cognitive diversity on team performance.