Abstract
In this study we examine the categorization processes implied in demographic faultlines and both the direct and complex effects of faultline strength and activation on group performance. Using panel data from 48 groups undertaking a strategic business simulation at a UK University, we find that activated faultlines have both positive and negative effects on group performance depending on when activation occurs in the group life cycle. Surprisingly, we did not detect any significant relation between faultline strength and the process of activation over time. Rather, once activated strong faultlines lead to powerful and stable subgroups for the entire duration of the simulation. Overall our results undermine the centrality of faultline strength for predicting the process of activation and group performance and call for further research on factors other than compositional that may activate demographic splits.
Published Version
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