We integrated theories of inequality, stratification, status characteristics and system justification to investigate how informal power difference within a work group contributes to power struggle, which further compromise group performance in the organization. Past research has already demonstrated that high level of formal power difference is more likely to induce intragroup power struggle that further compromises group performance. We argued and observed that informal power difference has similar yet nuanced effects on intragroup power struggle and group performance. Using two independent samples of 147 work groups from multiple enterprises in China, we found that informal power difference is positively related to intragroup power struggles, and it has U-shaped relationship with group performance. Besides the inverted U-shaped (U-shaped) relationship between informal power difference and intragroup power struggle (group performance) is more likely to be salient when informal power distribution is illegitimate. Under these circumstances, there is a significant and negative indirect relationship between informal power difference and group performance via intragroup power struggle. However, when informal power distribution is legitimate, it is less likely that informal power difference and/or intragroup power struggle would affect group performance via intragroup power struggle. We concluded with discussion of the theoretical and practical implications for future research.
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