Abstract

Drawing upon social exchange theory, we contend that idiosyncratic deals (i.e., i-deals) transpire the effect of overqualification on employee performance (operationalized as task performance and organizational citizenship behaviors: OCB). Furthermore, we extend i-deals theory to the workgroup context and assert that the extent of overqualification and team orientation in the workgroup influence the overqualification-i-deals-performance relationship. Per our expectations, hypothesis tests using time-lagged bi-source data from 682 employees nested in 115 workgroups revealed a significant relationship between overqualification and employee performance via i-deals. Further, the positive relationship between overqualification and i-deals was weakened by group overqualification and team orientation. Finally, moderated mediation path analyses showed that the indirect effect of overqualification on employee performance through i-deals was weaker in workgroups with high overall overqualification and high team orientation. Theoretical and practical implications and directions for future research are discussed.

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