Effective cross-functional integration is characterized by complex interactions during project work in supply chain management. We draw from a socio-emotional communication framework and team development models to carve out that socio-emotional communication constitutes a double-edged sword in setting the stage for team performance development. Specifically, in the light of unequivocal prior research findings regarding this topic, we pose the question of whether team members’ reactions to socio-emotional statements may be the reason that some cross-functional teams succeed and others fail. We used sophisticated interaction coding to capture early communication patterns of 33 teams (N = 134) as well as their performance development over six meetings of a supply chain simulation. Using latent growth modeling, we found that the amount of socio-emotional communication in the first meeting negatively impacts overall team performance. However, running sequential analytical models revealed that unsuccessful teams reacted upon socio-emotional communication with dysfunctional remarks and task-oriented contributions, while successful teams only showed task-oriented reactions, and more profoundly increased team performance over different rounds. Operations managers should be sensitized about the possible detrimental effects of unthoughtful handling of socio-emotional chitchat in cross-functional teams.
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