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Psychology
Journal of Cross-Cultural
DOI: 10.1177/0022022104264123
2004; 35; 283Journal of Cross-Cultural Psychology
Karen Van Der Zee, Nelleke Atsma and Felix Brodbeck
The Influence of Social Identity and Personality on Outcomes of Cultural Diversity in Teams
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10.1177/0022022104264123JOURNAL OF CROSS-CULTURAL PSYCHOLOGYvan der Zee et al. / CULTURAL DIVERSITY IN TEAMS
THE INFLUENCE OF SOCIAL IDENTITY AND
PERSONALITY ON OUTCOMES OF
CULTURAL DIVERSITY IN TEAMS
KAREN VAN DER ZEE
University of Groningen
NELLEKE ATSMA
Royal Netherlands Navy
FELIX BRODBECK
Aston Business School
The present study examined the influence of social identity and personality on work outcomes among business
students who worked together in culturally diverse teams. As predicted, a negative effect of identification
with one's cultural background and a positive effect of identification with the team on well-being were
found under conditions of high diversity. For commitment, the same pattern of findings was obtained, but
now the impact of identification with the team was found regardless of the level of diversity. No support was
found for strong positive outcomes associated with the case in which individuals identify with the team and
with their cultural background.With respect to personality, the intercultural traits of Emotional Stability and
Flexibility were found to have a positive effect on work outcomes under conditions of high diversity. Interestingly,
whereas Flexibility had a positive effect on exam grades under conditions of high diversity, a
negative effect of this trait was found under conditions of low diversity.
Keywords: cultural diversity; personality; social identity; work outcomes
Theworkplace isbecoming more culturally diverse. Due to migration and a growth in international
assignments, work units are less and less dominated by White male majority group
members. What are the consequences of an increasing diversification of groups in organizations?
How does the mixture of cultures impact on the well-being, commitment, and productivity
of team members?
Empirical research on the effects of diversity in workgroups has provided mixed results
(Williams & O'Reilly, 1998). On one hand, interactions between individuals with different
norms and perspectives may create conflicts and tensions that may prevent teams from putting
effort into their basic tasks. On the other hand, the creative tensions associated with
diversity may encourage mutual inspiration and facilitate learning. Diversity ensures richness
of input that may facilitate creative and innovative work outcomes (Mumford &
Gustafson, 1988). Research has shown that multicultural groups develop more and better
alternatives to a problem and criteria for evaluating those alternatives than do culturally
homogeneous groups (McLeod & Lobel, 1992), and that they are more creative than homogenous
groups (Ling, 1990; see also B. E. Jackson, 1991). In the present study, we were interested
in the psychological factors thatmay buffer againstthe potentialnegative effectsof cultural
diversity and that may pave the way for its benefits. Because the negative outcomes of
283
AUTHORS'NOTE: We wish to thank Winny Bakker, Kyra Luijters, and Maike Wehrens for their valuable comments on an earlier
draft of this article.
JOURNAL OF CROSS-CULTURAL PSYCHOLOGY, Vol. 35 No. 3, May 2004 283-303
DOI: 10.1177/0022022104264123
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diversity seem primarily associated with lower attraction among individuals with different
attitudes, whereas its potential virtue is linked to superior problem solving and higher creativity,
we focused on the impact of diversity on affective outcomes (work satisfaction and
commitment) and performance indicators.
NEGATIVE OUTCOMES OF CULTURAL DIVERSITY
Cultural diversity refers to the representation, in a social system, of people with distinctly
different group affiliations of cultural significance (Cox, 1993). Research suggests a seemingly
universal human tendency to respond positively to similarity and negatively to dissimilarity
(e.g., Byrne, 1999). In general, we are attracted by people who have similar attitudes
because they confirm our norms and values and because they are easy to communicate with
(similarity attraction hypothesis; see Newcomb, 1956). Social identity (Tajfel & Turner,
1986) and self-categorization theory (Turner, 1982) predict that individuals tend to classify
their social environment into subcategories and that they tend to create a favorable picture of
their own category relative to other categories to retain a positive self-image. In-group favoritism,combined
with out-group bias, may prohibit productive teamprocesses and may affect
team outcomes negatively. Similarity provides a strong basis for categorization.
In work organizations, observable differences such as race and gender often lead to negative
consequences, eliciting stereotypes, prejudice, and negative work outcomes (McLeod,
Lobel, & Cox, 1996; Milliken & Martins, 1996). In the phase of group formation, members
become organized into networks of social relations that are driven by the principles of similarity--attraction
and social categorization. Detectable differences are by nature of these
principles more likely to result in fragmentation within the group, and this may have a strong
negative impact on subsequent group functioning (Milliken, Bartel, & Kurtzberg, 2003).
Indeed, Watson, Kumar, and Michaelsen (1993) found that newly formed heterogeneous
groups of students working on a task performed less well than homogeneous groups. In the
present study, we focused on intercultural teams of business students who worked together
for a number of weeks in a course. It was predicted that diversity would be negatively
associated with work outcomes (Hypothesis 1).
DIVERSITY, SOCIAL IDENTITY, AND WORK OUTCOMES
It seems that groups have to pass through a number of stages before they can perform efficiently
(e.g., Tuckman, 1965). Starting from a stage of high member uncertainty and a search
for group goals, they have to develop common group norms and start to exchange information
to stabilize and perform effectively as a group. In the present study, it was assumed that
groups only are able to do so if they are able to develop a common social identity. Members
of multicultural teams are part of different social groups, and each of these groups makes up
part of their social identity. If team members primarily stress their membership of a cultural
group, the emphasis in interactions will be on cultural values, which differ for the different
cultural subgroups within the team (see Abrams & Hogg, 1990; Tajfel & Turner, 1986).
Under those circumstances, incompatibility of cultural values may harm constructive group
processes, which may negatively affect the subjective well-being of team members as well as
their performance (Messick & Mackie, 1989). But even in the absence of strong differences
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in values, if cultural subgroups become salient, a tendency to favor in-group members and to
derogate out-group members may affect team outcomes negatively.
The patterns of group identification that emerge during group formation are likely to
affect its performance in the operational phases of a group (Milliken et al., 2003). As a group
begins to work toward its task goals, members elaborate and act on the patterns of interaction
established during the formation period. In the present study, the influence of social identity
on outcomes in culturally diverse team was examined. It was expected that a strong identification
with one's cultural background is negatively related to well-being, team commitment,
and ultimate performance (Hypothesis 2a). Moreover, it was expected that this negative relationship
would be moderated by diversity: The more culturally diverse a team is, the stronger
is the negative relationship between identification with one's cultural background and work
outcomes (Hypothesis 2b). Hence, in highly diverse teams, there are many cultural groups
with different norms and values making a common norming extremely difficult if members
stick to their cultural values.
A predominance of their cultural identity among members of diverse groups is not likely
to be beneficial. However, if in the phase of group formation, patterns of social relations
emerge that exceed the borders of cultural groups, and if group norms evolve that are shared
by all team members, a common group identity may develop. Under those circumstances,
group members are more inclined to interpret the world and their own place in it in a manner
that is consistent with its values, ideology, and culture (Mael & Ashforth, 1992), and will
become more strongly focused on shared goals. Empirical studies indicate that high identifiers
regard their group as more homogeneous and show a propensity to stand and fight for
their group (e.g., Ellemers, Spears, & Doosje, 1997; Spears, Doosje, & Ellemers, 1997). We
therefore assumed that identification with the team has a positive influence on team members'well-being,
commitment, and ultimate performance (Hypothesis 3a). Moreover, it was
expected that the relationship between identification with the team and work outcomes is
moderated by diversity. The more culturally diverse a team is, the stronger is the positive
relationship between identification with the team and work outcomes (Hypothesis 3b). A
strong team identity is more important under conditions of high diversity, in which case differences
in norms and values and subgroup formation may prohibit the emergence of common
norms and goals. The study by Watson et al. (1993) that showed inferior performance
among diverse groups in the beginning revealed that in the long run, heterogeneous groups
outperformed homogeneous groups. Apparently, these groups had been able to overcome
the difficulties they encountered in the formation stage, and a strong group identity may have
moderated their outcomes.
The previous paragraphs suggest that identification with the team is crucial to team functioning
in culturally diverse teams. Whether team members should at the same time be
forced to give up their cultural identities is questionable, however. Studies among immigrants
have revealed that immigrants reach the highest level of functioning if they identify
themselves with the new culture, but at the same time maintain aspects of their original culture
(Berry, 1997). Our cultural background forms an important part of the self that has
affected our behaviors, feelings, and cognitions from early childhood and that is not easily
denied. This apparently also holds for behavior at work. Moreover, the positive outcomes
associated with diversity in terms of better problem solving and higher creativity will get lost
if members of minority groups completely conform to majority perspectives.
In the present study, it was assumed that for effective collaboration in culturally diverse
teams, it is important that employees identify themselves with their cultural background and
their team. This pattern of identification in groups with a subgroup (cultural group) and a
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superordinate group (the team) is usually referred to in the literature as dual identity (e.g.,
Gaertner & Dovidio, 2000). In the context of cultural diversity in organizations, a dual identity
parallels what at societal level is called integration. The term integration is used when
immigrants regard contact with the members of the host culture as important but at the same
time wish to maintain their native culture, in contrast to being only focused on their original
culture (separation) or being solely oriented toward the new culture (assimilation) (Berry,
1997). Studies on acculturation strategies in adjustment to new societies have revealed more
positive outcomes associated with integration than with assimilation (Berry, 1997). Empirical
evidence has also revealed support for the positive outcomes of a dual identity in terms of
more harmonious intergroup relationships (Gaertner, Rust, Dovidio, Bachman, &
Anastasio, 1994).
In sum, we predicted that the relationship between identification with the team and work
outcomes is moderated by identification with one's cultural background. More specifically,
it was expected that the positive outcomes associated with strong identification with the team
particularly occur if team members also identify with their culture (Hypothesis 3c). In addition,
we expected that the interaction between team and cultural identification on team outcomes
is in turn moderated by diversity. Again, it was predicted that the higher the diversity
of the group, the stronger the moderating effect of identification with one's culture on the
relationship between identification with the team and work outcomes (Hypothesis 3d).
DIVERSITY, PERSONALITY, AND WORK OUTCOMES
Work outcomes in intercultural teams seem not only to be under the influence of social
identities but also under the influence of personal identities. An important part of individuals'
personal identities is formed by their personalities. Whereas in general personality
seems to affect the way people interact in a work setting, recent research has pointed at the
relevance of personality traits to effective functioning in an intercultural work context (e.g.,
Arthur & Bennet, 1995; Ones & Viswesvaran, 1997). The present study focused on five traits
that have been detected as contributing to success in intercultural settings (Van der Zee &
Van Oudenhoven, 2000, 2001): Cultural Empathy, Open-Mindedness, Social Initiative,
Flexibility, and Emotional Stability. In comparison to general traitssuch as the Big Five (e.g.,
Costa& McCrae,1992), theseinterculturaltraitscover more narrowly behavioral tendencies
that are of relevance to multicultural success. First evidence suggests that the five traits are
related to feelings of self-efficacy, health, well-being, and performance in an international
context (e.g., Mol, Van Oudenhoven, & Van der Zee, 2001; Van Oudenhoven & Van der Zee,
2002).
Cultural Empathy, as a first dimension, can be defined as the capacity to clearly project an
interest in others, as well as to obtain and reflect a reasonably complete and accurate sense of
another's thoughts, feelings, and/or experiences (e.g., B. Ruben, 1976). In other words, this
dimension refers to the ability to empathize with the feelings, thoughts, and behaviors of
members from different cultural groups. Their sensitivity makes individuals high in this trait
lesslikely to experience communication problems in culturally diverse teams.A second relevant
dimension to acquiring the rules and values of a new culture is Open-Mindedness, referring
to an open and unprejudiced attitude toward out-group members and toward different
culturalnorms and values(see Arthur & Bennett,1995). Open individuals are lessinclinedto
develop negative stereotypes of group members from different cultural subgroups, but are on
the contrary curious and interested in their perspectives. Indeed, in an earlier experimental
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study among students, a combined factor encompassing Cultural Empathy and Open-Mindedness
was associated with a tendency to appraise intercultural situations as a challenge and
to respond positively to those situations (Van der Zee, Van Oudenhoven, & De Grijs, in
press). The third intercultural dimension is Social Initiative, defined as a tendency to actively
approach social situations and to take initiatives. A related construct is Extraversion, which
several researchers argue to be important for multicultural success (Deller, 1997; Ones &
Viswesvaran, 1997). Emotional Stabilityrefers to a tendency to remain calm in stressful situations
versus a tendency to show strong emotional reactions under stressful circumstances
(Church, 1982; Tung, 1981). Flexibility as the fifth dimension of multicultural effectiveness
has been discussed as an important dimension by a number of authors (Arthur & Bennett,
1995; I. Ruben & Kealey, 1979). In intercultural situations, people need to be able to switch
easily from one strategy to another because familiar ways of handling things may no longer
work. In the earlier experimental study, we found that a factor encompassing Emotional Stability
and Flexibility was associated with a tendency to appraise intercultural situations as
less threatening and to respond with less negative affect to these situations (Van der Zee etal.,
in press).
In the present study, it was assumed that the intercultural traits buffer against the negative
outcomes associated with diversity and enhance its potential benefits. The five traits seem on
one hand related to less communication problems, stereotyping, and feelings of threat
among team members. On the other hand, individuals high on these traits seem to regard differences
more strongly as a challenge and will be more inclined to use them for the benefit of
the group. It was therefore predicted that the intercultural traits are positively related to team
members'well-being, commitment, and performance (Hypothesis 4a). Because these traits
are assumed to be helpful in adjusting to an intercultural environment, we further assumed
that the relationship between each trait and work outcomes is moderated by diversity, that is,
the higher the level of diversity, the stronger the relation between personality and work
outcomes (Hypothesis 4b).
METHOD
SAMPLE
The data for the present study were collectedat Aston Business School (Aston University,
Birmingham, UK). The sample consisted of 228 students of the postgraduate course Organizational
Behavior, who worked together in 43 syndicate groups throughout the academic
year. Syndicate groups were created basically randomly, with three limiting factors.
Homogeneous foreign student groups were avoided; if possible, groups had at least one
U.K. student, and, finally, students within one syndicate group are from the same program
(MBA, MSc in Business, MSc Work Psychology and Business, etc.). Group size varied from
four to eight students (M = 5.69, SD = 1.05). The majority of the students were MBA students
(22% full-time and 8% part-time). The rest of the students did an MSc in business (13%),
international business (16%), business and information technology (16%), marketing (1%),
personnel management and business (13%), work psychology and business (6%), and public
service management (5%). The age of the students varied between 20 and 55 years (M =
27.2, SD = 6.8). At the group level, strong age differences were found: mean group age varied
from 21.0 years to 35.7 years. The age dispersion was reasonably balanced across groups
and varied between 7.3 to 9.6 years of age difference between the eldest and youngest group
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member. In terms of gender, 51% of the total sample was male versus 49% female. All
groups except one were mixed in terms of gender. Thirty-six cultural groups were represented
in the sample, varying from Chinese (7.6%; an additional 1.3% came from Hong
Kong), African (2.1%), Greek (5.5%), Taiwanese (3.4%), and Indian (5.8%). The majority
of the respondents were British (52.5%). It must be noted that from this latter group, 76%
was native British; the remaining respondents were originally from 11 different cultures, in
majority Anglo-Indian (14.9%), Anglo-Pakistani (4.1%), and Anglo-African (1.7%). The
number of cultural backgrounds represented within a group varied between 1 and 6 (M =
3.19, SD = 1.17).
PROCEDURE
All students who took the course on Organizational Behavior were approached for participation
in the study at the first lecture of the course. During a 10-week period, students followed
lectures, and each week they worked together on coursework assignments that helped
them to understand the literature of the course and prepare for the examination. For the
assignment, the students had to reflect on the composition, processes, development, and outcomes
of their teamduring the course. They had to present an analysis of theteam(based on a
weekly record of the group's functioning) and how its effectiveness could be improved. In
their analysis, they had to rely on theory, models, and empirical evidence from the study of
Organizational Behavior.
Students were asked to fill out a questionnaire during the 2nd week of the first term (T1),
and again 6 weeks later, in the 8th week of the first term (T2). The questionnaire was phrased
in English. The students had 10 minutes to complete each questionnaire. If they needed more
time, they could finish the questionnaire during the break. At the end of the Organizational
Behavior course, the students had to perform an individual exam. The exam mark was used
as a performance measure.
INSTRUMENTS
T1 measures. All students were asked to indicate their cultural background. As a definition
for cultural background, we used the social setting in which they were brought up. It was
explained that every nation has its own culture and that often there are different cultural
groups in one nation. As an indicator of cultural diversity, we used a formula developed by
Tsui, Egan, and O'Reilly (1992):
( )D n Si Sj
i
j
= -





1
2
/
This measure represents the square root of the summed square differences between individual
Si's value on a specific demographic variable (in this case, cultural background as
indicated by each student) and the value on the same variable (cultural background) for every
other individual Sj in the sample for the work unit, divided by the totalnumber of respondents
in unit (n), in this case the syndicate group (Tsui et al., 1992). The score on cultural diversity
was computed by considering the differences among all the cultural backgrounds in the syndicate
group. For example, in a group with 1 African, 1 Asian, and 2 British, the score for the
African and the Asian student, respectively, would be 3 (1 for being different from each other
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and 2 for being different from each of the British), and 2 for each of the British (1 for being
different from the African, 1 for being different from the Asian, and 0 for being equal to each
other). The n used in this formula is the total number of individuals in the unit, including the
person i whose difference score is being calculated. Using n rather than n ­ 1 allows us to
derive a metric that captures the size and the compositional effects. For example, 1 Asian in a
group with 9 British would have a difference score of .95 (square root of 9/10). One Asian in
a group with 99 British would have a difference score of .99 (square root of 99/100). In both
cases, the denominator is n. If n ­ 1 were used, the difference score for the individual Asian in
both cases would be 1.00 (square root of 9/9 in the first case and 99/99 in the second case).
This metric shows that the Asian in the second case is more different from the others (99
men) than the Asian in the first case (9 men). Their respective difference scores (.99 vs. .95),
using n as the denominator, reflect the relative degree of difference (Tsui et al., 1992). In the
present study, individual diversity scores ranged from 0 to .93 (M = .70, SD = .26).
Multicultural Personality Questionnaire (MPQ). The intercultural traits were measured
with the English version of the 91-item MPQ (Van der Zee & Van Oudenhoven, 2000, 2001).
Each traitwas measured by items that describe concrete behaviors or tendencies, which were
considered to be indicative of the specific dimension. Participants could give their answers
on a 5-point scale, ranging from 1 (not at all applicable) to 5 (totally applicable). Cultural
Empathy was measured by 18 items (M = 3.85, SD = .41;  = .93). Examples of items are
"Tries to understand other people's behavior" (+) and "Finds it hard to empathize with others"
(­). Open-Mindedness was measured by 18 items (M = 3.68, SD = .41;  = .93). Examples
of items are "Is interested in other cultures" (+) and "Is fascinated by new technological
developments" (+). Social Initiative was measured with 17 items (M = 3.55, SD = .50;  =
.94). Examples of items are "Takes initiatives" (+) and "Finds it difficult to make contact" (­).
Emotional Stability was measured by 20 items (M = 3.19, SD = .48;  = .95). Examples of
items are "Keeps calm at ill-luck" (+) and "Suffers from conflicts with others" (­). Flexibility
was measured by 18 items (M = 3.28, SD = .44;  = .93). Examples of items are "Changes
easily from one activity to another" (+) and "Wants to know exactly what will happen" (­).
The MPQ was filled out at the beginning of the academic year.
T2 measures. Six items were included for Social Identification. Identification with the
team was measured with six items (M = 3.81, SD = .76;  = .86) derived from Hinkle, Taylor,
and Fox-Cardamone (1989). Sample items are "I feel good about being a member of my syndicate
group" and "Being a member of my syndicate group is important to me." For identification
with the cultural background, the same items were used, replacing "syndicate group"
with "cultural background." Cronbach's alpha of this scale was .83. Participants could give
their answers on a 5-point scale ranging from 1 (totally disagree) to 5 (totally agree) (M =
4.09, SD = .66). The correlation between identification with the team and with the cultural
background was significantly positive (r = .32, p < .001).
Well-being. Students'well-being was measured by a 12-item questionnaire developed by
Warr (1990). Participants were asked to rate 12 feelings on a 6-point scale ranging from 1
(never) to 6 (all of the time) ("Thinking of the past 8 to 10 weeks, how often has your syndicate
group made you feel each of the following . . ."). Cronbach's alpha of this scale was .91
(M = 4.15, SD = .67). The negative feelings were tense, uneasy, worried, depressed, gloomy,
and miserable. The positive feelings were relaxed, optimistic, enthusiastic, and calm. In factor
analysis, two factors were extracted prior to rotation with eigenvalues greater than 1.
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However, all the items had a greater loading on the first factor (all items loaded above .59).
Taken together with the size of the first principal component relative to the second component
(with, respectively, 49.2% vs. 18.8% of variance explained), these prerotated factor
loadings offer strong evidence for a general factor of work-related psychological well-being
(see also Daniels & Guppy, 1994). It was therefore decided to combine all items into one
dimension. The overall scale score was obtained by taking the unweighted mean of the item
scores after first recoding the items that referred to negative feelings.
Commitment to the team. Students'commitment to the team was measured by a scaleconsisting
of five statements, and participants were asked to rate each statement on a 5-point
scale ranging from 1 (strongly disagree) to 5 (strongly agree). The internal consistency of
this scale was high (M = 3.34, SD = .93;  = .91). Examples of statements are "I would welcome
the chance to continue working in this group" (+) and "I sometimes wished that I were
in a different group" (­).
T3 measure: Performance. By the end of the first term, students had to perform an individual
exam on the Organizational Behavior course. The examination was an open-book
case study. The case study was provided 2 weeks before the examination. The examination
consisted of questions related to the case study. Students had to identify and describe the relevant
areas of knowledge from the study of Organizational Behavior, apply this knowledge
to an analysis of the issues in the case study, and make relevant and useful recommendations
based on their analysis. The examination was marked in percentages, ranging from 25%
(lowest mark) to 85% (highest mark); 40% was the pass rate (M = 60.37, SD = 7.79).
Although the examination was independent of the course work, it was assumed that because
the group sessions were explicitly meant to help students master the study materials, the
effectiveness of the group process would be reflected in students' individual grades.
RESULTS
DIVERSITY, SOCIAL IDENTITY PATTERNS, AND WORK OUTCOMES
First, we were interested in the influence of identification with the team and identification
with one's cultural background on team members' well-being. Two levels of measurement
can be distinguished in the data: the individual level (Level 1) and the group level (Level 2).
In our analyses, the units of interest were the individuals rather than the groups. However, to
control for dependencies in the data as a result of the fact that individuals were nested in
teams, the team level had to be taken into account in the data analysis. If the group level is
ignored in the analyses, the within and between slopes are mixed, resulting in a very misleading
estimate of the relationship between the lower level predictor variables and the outcome
measures (see Bosker & Snijders, 1990; Kenny, Kashy, & Bolger, 1998).
Therefore, we performed regression analysis with the multilevelapplication for Windows
(MlWiN 1.1; Rasbash, Healy, Browne, & Cameron, 1998) instead of the standard OLSregression
procedure from the SPSSX package. This program more adequately takes into
account the hierarchical structure of the data. In multilevel analysis, random effects provide
estimates of the variation in the independent variable that is due to differences between
groups (Level 2 variation) and between individuals (Level 1 variation). The modeling of
fixed effects is comparable to the derivation of regression weights in ordinary regression
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analysis. As in the standard regression procedure, interaction effects are represented by the
product term of the independent variables that were assumed to interact. To prevent problems
of multicollinearity, in all the analyses, variables have to be centered before they are
entered in the equation (Aiken & West, 1991). Significance of effects was tested by means of
the likelihood ratio test. This test uses the difference between two model fits as a test statistic.
The difference in model fit follows a chi-square distribution, with the number of added
parameters as degrees of freedom.
A two-level model was estimated, whereby the levels were formed by the team (Level 2)
and the individual (Level 1). We started with an empty model in which the random effects of
group and individual on well-being were modeled (see Table 1, Model 1). This empty model
was tested against alternative models in which the fixed effects of cultural identity, team
identity, and level of diversity were modeled. The intraclass correlation, indicating the proportion
of variance in the dependent variables that is accounted for by the group level, was
.15, pointing at the usefulness of taking the multilevel structure of the data into account.1
van der Zee et al. / CULTURAL DIVERSITY IN TEAMS 291
TABLE 1
Results of Multilevel Analyses of the Effect of Diversity, Identification
With Cultural Background, and Identification With the Team on Well-Being
Model 1 Model 2 Model 3 Model 4
Coefficient SE Coefficient SE Coefficient SE Coefficient SE
Fixed effect
Intercept ­0.012 0.057 ­0.006 0.044 0.009 0.046 0.007 0.046
Diversity ­0.375* 0.169 ­0.479** 0.175 ­0.513** 0.178
Identification With
Cultural Background ­0.019 0.064 ­0.053 0.066 ­0.047 0.066
Identification With
the Team 0.344** 0.054 0.341** 0.054 0.339** 0.054
Diversity × Identification
With Cultural Background ­0.499* 0.233 ­0.496* 0.233
Diversity × Identification
With the Team 0.633* 0.253 0.661** 0.256
Identification With
Cultural Background ×
Identification With the
Team ­0.002 0.073 ­0.013 0.074
Diversity × Identification
With Cultural Background
× Identification
With the Team 0.262 0.311
Variance SE Variance SE Variance SE Variance SE
Variance
Between-group variances

2
= var(U0j) 0.068 0.030 0.020 0.019 0.025 0.019 0.024 0.019
Between-individual
variances 2
= var(Rij) 0.376 0.038 0.339 0.034 0.323 0.033 0.323 0.033
Deviance 468.549 426.725 418.489 417.787
*p < .05. **p < .01.
 2004 SAGE Publications. All rights reserved. Not for commercial use or unauthorized distribution.
at Rijksuniversiteit Groningen on June 25, 2007http://jcc.sagepub.comDownloaded from
Adding the fixed main effects of diversity, identification with the team and identification
with one's culture resulted in a significant model improvement (Model 2). The deviance
decreased with 41.824 (df = 3, p < .001). Significant main effects were found of diversity (z =
­2.22, p < .05), with higher diversity resulting in lower well-being; and of identification with
the team (z = 6.37, p < .01), indicating higher well-being associated with stronger identification
with the team. A third model, whereby the two-way interaction effects were added,
resulted in further improvement (decrease in deviance = 8.236, df = 3, p < .05). Two interaction
effects were found. The data revealed a significant Negative Diversity × Identification
With One's Culture interaction (z = ­2.14, p < .05) and a significant Positive Diversity ×
Identification With the Team interaction (z = 2.50, p < .05). Figure 1 shows the regression
lines representing the effect of identification with one's cultural background on well-being
among individuals low and high in diversity.2
As Figure 1 shows, the negative effect of identification
with one's cultural background on well-being only occurred under circumstances
of high diversity. This finding is in line with our hypothesis. Figure 2 graphically represents
the regression lines for the effect of identification with the team on well-being. As Figure 2
shows, again as expected, the positive effect of identification with the team on well-being
was stronger under conditions of high diversity. Finally, including the Diversity × Identification
With the Team × Identification With One's Culture three-way interaction (Model 4) in
the model did not lead to a significant improvement (decrease in deviance = .702, ns). Consistently,
the coefficient representing the interaction term failed to reach significance (z =
.84, ns).
The same analyses were performed for commitment (see Table 2). For this variable, an
intraclass correlation of .27 was found, suggesting that the team level was responsible for a
considerable amount of variance in the data. As Table 2 reveals, Model 2 provided a significantbetterprediction
ascompared to the empty model (decrease in deviance =55.128; df = 3,
p < .001). In line with our predictions, a significant negative effect of identification with
one's culture was found (z= ­2.33, p < .05). Identification with the team had a positive effect
on commitment, (z = 7.93, p < .01). Adding the interaction terms to the equation (see Model
292 JOURNAL OF CROSS-CULTURAL PSYCHOLOGY
5
4
3
2
1
Wellbeing
Identification with cultural background
Low High
Low diversity
High diversity
Figure 1: Interaction Effect of Diversity and Identification With Cultural Background on Well-Being
 2004 SAGE Publications. All rights reserved. Not for commercial use or unauthorized distribution.
at Rijksuniversiteit Groningen on June 25, 2007http://jcc.sagepub.comDownloaded from
3), we found a significant interaction effect between diversity and identification with one's
culture (z = 2.12, p < .05). The regression lines for the relationship between identification
with one's cultural background and commitment under conditions of high and low diversity
are given in Figure 3. Again, in line with the predictions, the negative effects of identification
with one's culture were only found under conditions of high diversity. As a whole, Model 3
did not lead to significant improvement in prediction compared to Model 2 (decrease in deviance
= 4.608; df = 3, ns). However, the decrease in deviance for the more parsimonious
model, in which in addition to the main effects only the Diversity × Identification With One's
Culture interaction was included, was significant (decrease in deviance = 4.01; df = 1, p <
.05).3
The three-way Diversity × Identification With the Team × Identification With One's
Culture failed to reach significance. The same analyses did not provide support for identity
effects on exam grades.
To summarize, diversity had a negative effect on well-being, but unexpectedly not on
commitment (Hypothesis 1). Identification with one's cultural background had a negative
effect on commitment, and for well-being, this effect was only found among team members
who experienced a high level of diversity (Hypotheses 2a and 2b). Identification with the
teamhad apositiveeffecton both well-being and commitment,and for well-being, thiseffect
was stronger the higher the level of diversity (Hypotheses 3a and 3b). We failed to find an
interaction effect of identification with the team and identification with one's culture on
work outcomes, nor did we find support for the predicted Diversity × Identification With the
Team × Identification With One's Culture interaction (Hypotheses 3c and 3d).
DIVERSITY, INTERCULTURAL TRAITS, AND WORK OUTCOMES
Again, multilevel analyses were performed to test the effects of diversity and intercultural
traits on work outcomes. Two models were tested against the empty model. In Model 2, the
main effects of diversity and personality were entered into the equation, whereas Model 3
represented the main effects as well as the diversity by personality interaction effects. For
van der Zee et al. / CULTURAL DIVERSITY IN TEAMS 293
5
4
3
2
1
Wellbeing
Identification with the team
Low High
Low diversity
High diversity
Figure 2: Interaction Effect of Diversity and Identification With the Team on Well-Being
 2004 SAGE Publications. All rights reserved. Not for commercial use or unauthorized distribution.
at Rijksuniversiteit Groningen on June 25, 2007http://jcc.sagepub.comDownloaded from
well-being (see Table 3), adding the main effects of diversity and the intercultural traits to the
equation resulted in a significant model improvement (decrease in deviance = 12.378, df = 6,
p < .05, one-sided). A significant effect of Emotional Stability on well-being was found (z =
2.55, p < .05). Adding the interaction terms (Model 3) again resulted in a significant model
improvement (decrease in deviance = 9.859, df = 6, p < .05, one-sided). A significant Diversity
× Emotional Stability interaction was found (z = 2.42, p < .05). The regression lines for
high and low levels of diversity show that, in line with the expectations, the effect of Emotional
Stability on well-being was only supported among team members who experienced
high diversity (see Figure 4). No significant effects of personality on commitment were
found. Finally, for exam grades, Model 2 did not lead to a significantlybetter fit,as compared
with the empty model (decrease in deviance = 8.88, df = 6, ns). We did find a significant main
effect of Flexibility (z = 1.78, p < .05, one-sided), suggesting better grades associated with
higher levels of Flexibility (see Table 4).
294 JOURNAL OF CROSS-CULTURAL PSYCHOLOGY
TABLE 2
Results of Multilevel Analyses of the Effect of Diversity, Identification
With Cultural Background, and Identification With the Team on Commitment
Model 1 Model 2 Model 3 Model 4
Coefficient SE Coefficient SE Coefficient SE Coefficient SE
Fixed effect
Intercept ­0.017 0.008 ­0.012 0.067 0.009 0.069 0.007 0.069
Diversity 0.033 0.239 ­0.016 0.242 ­ 0.025 0.246
Identification
With Cultural
Background ­0.168* 0.072 ­0.206 0.074 ­0.204** .075
Identification With
the Team 0.484** 0.061 0.505** 0.062 0.504** .062
Diversity × Identification
With Cultural
Background ­0.555* 0.262 ­0.554* 0.261
Diversity × Identification
With the Team 0.151 0.287 0.175 0.289
Identification With
Cultural Background
× Identification With
the Team ­0.064 0.083 0.068 0.084
Diversity × Identification
With Cultural Background
× Identification
With the Team 0.109 0.355
Variance SE Variance SE Variance SE Variance SE
Variance
Between-group variances

2
= var(U0j) 0.183 0.060 0.119 0.042 0.122 0.043 0.121 0.042
Between-individual
variances 2
= var(Rij) 0.496 0.050 0.403 0.041 0.393 0.040 0.393 0.040
Deviance 551.410 496.282 491.674 491.572
*p < .05. **p < .01.
 2004 SAGE Publications. All rights reserved. Not for commercial use or unauthorized distribution.
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van der Zee et al. / CULTURAL DIVERSITY IN TEAMS 295
5
4
3
2
1
Commitment
Identification with cultural background
Low High
Low diversity
High diversity
Figure 3: Interaction Effect of Diversity and Identification With Cultural Background on Commitment
TABLE 3
Results of Multilevel Analyses of the Effect of Diversity
and Multicultural Traits on Well-Being
Model 1 Model 2 Model 3
Coefficient SE Coefficient SE Coefficient SE
Fixed effect
Intercept ­0.014 0.0057 ­0.011 0.054 0.003 0.057
Diversity ­0.301 0.204 ­0.369 0.222
Cultural Empathy ­0.020 0.130 ­0.021 0.128
Openmindedness 0.150 0.194 0.114 0.149
Social Initiative ­0.050 0.110 ­0.046 0.112
Emotional Stability 0.283* 0.111 0.292* 0.109
Flexibility ­0.201 0.121 ­0.199 0.122
Diversity × Cultural Empathy 0.926 0.513
Diversity × Openmindedness ­0.916 0.589
Diversity × Social Initiative ­0.526 0.519
Diversity × Emotional Stability 1.117* 0.461
Diversity × Flexibility ­0.504 0.579
Variance SE Variance SE Variance SE
Variance
Between-group variances

2
= var(U0j) 0.069 0.031 0.058 0.028 0.072 0.030
Between-individual variances
2
= var(Rij) 0.376 0.038 0.361 0.037 0.337 0.233
Deviance 468.470 456.092 446.233
*p < .05. **p < .01.
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296 JOURNAL OF CROSS-CULTURAL PSYCHOLOGY
5
4
3
2
1
Wellbeing
Emotional stability
Low High
Low diversity
High diversity
Figure 4: Interaction Effect of Diversity and Emotional Stability on Well-Being
TABLE 4
Results of Multilevel Analyses of the Effect of Diversity
and Multicultural Traits on Grades
Model 1 Model 2 Model 3
Coefficient SE Coefficient SE Coefficient SE
Fixed effect
Intercept 0.021 0.545 0.025 0.539 ­0.117 0.564
Diversity ­2.064 2.131 ­1.378 2.378
Cultural Empathy 1.839 1.540 1.807 1.536
Openmindedness 0.596 1.748 1.176 1.770
Social Initiative ­0.579 1.307 ­0.163 1.355
Emotional Stability ­0.837 1.318 ­0.799 1.319
Flexibility 2.550* 1.433 1.879 1.465
Diversity × Cultural Empathy ­5.147 6.162
Diversity × Openmindedness 0.460 6.860
Diversity × Social Initiative ­3.153 6.309
Diversity × Emotional Stability ­8.325 5.546
Diversity × Flexibility 14.115* 7.001
Variance SE Variance SE Variance SE
Variance
Between-group variances
a

2
= var(U0j) 2.653 2.915 2.779 2.842 3.146 2.855
Between-individual variances
2
= var(Rij) 55.208 5.611 52.986 5.388 51.385 5.224
Deviance 1,626.400 1,617.516 1,611.842
a. This value corresponds to an intraclass correlation of .05.
*p < .05. **p < .01.
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Model 3, representing the Diversity × Personality interaction effects, also did not result in
a significant decrease in deviance (decrease in deviance = 5.67, df = 5, ns), although the
parameter estimates for Model 3 revealed a significant interaction effect of diversity and
Flexibility (z = 2.01, p < .05). The more parsimonious model, including only the main effects
of diversity and Flexibility, and the diversity by Flexibility interaction, did result in a significant
model improvement (decrease in deviance = 6.589, df = 3, p < .05, one-sided). This
points to the significant contribution of Flexibility and the diversity by Flexibility interaction
in the prediction of grades. The interaction effect is presented graphically in Figure 5. Again,
consistent with the predictions, the positive effect of Flexibility was only found under conditions
of high diversity. Under conditions of low diversity, the relationship even went in the
opposite direction, with less favorable grades associated with higher levels of Flexibility. To
conclude, the expected personality effects on work outcomes were supported for Emotional
Stability and Flexibility, whereby, as predicted, the personality effects increased with levels
of diversity.
DISCUSSION
The present study examined the role of social identity and personality as determinants of
work outcomes in intercultural teams. The study was performed among groups of business
students who worked together in syndicate groups for a 10-week period. Learning groups of
students have often been used in team research (e.g., Watson, Johnson, & Zgourides, 2002).
Although these groups have some characteristics that make them different from real work
teams, in most aspects they provide an excellent opportunity to examine ongoing processes
in teams. The data first show that cultural diversity in teams is negatively related to wellbeing.
This finding is in line with earlier findings that show lower well-being associated with
cultural diversity (Tsui et al., 1992; for a discussion, see S. E. Jackson, Stone, & Alvarez,
1993). Moreover, it is consistent with approaches within organizational psychology that
van der Zee et al. / CULTURAL DIVERSITY IN TEAMS 297
80
70
60
50
40
ExamGrades
Flexibility
Low High
Low diversity
High diversity
Figure 5: Interaction Effect of Diversity and Flexibility on Exam Grades
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assume tendencies toward homogeneity in organizations (O'Reilly, Chatman, & Caldwell,
1991; Schneider, Goldstein, & Smith, 1995). A fit of people's values to the values of the
organization they join seem to predict satisfaction, commitment, and performance. In the
present study, we did find an effect of diversity on well-being, but failed to find significant
outcomes for commitment and performance.
Identification with one's cultural background was, as predicted, negatively related to
well-being and commitment under conditions of high diversity. Brickson (2000), for example,
argues that if relations between cultural groups are conflictual and emotionally charged,
diversity will highlight intergroup relations outside the organization or unit, thus making
membership of the cultural group salient and strengthening adherence to cultural but not to
organizational norms. The present study suggests that individuals differ in their identification
with their cultural background and that the extent to which they do so influences their
well-being at work and their commitment to the job in a negative way.
In line with the expectations, positive effects of a strong team identity were found on team
members'well-being and on their commitment to the team. In general, a high team identity
seems associated with higher motivation. This finding is consistent with recent findings by
Van Knippenberg and Van Schie (2000), who found that identification with the work unit
was related to job satisfaction, intention to continue working for the organization, motivation,
and job involvement among local government workers and university employees. What
is new here is that we were able to show that the effects of team identity were stronger under
conditions of high diversity. Under those conditions, communication problems and conflicts
are more likely to occur, and having a common basis in a strong team identity seems even
more crucial than in homogeneous teams.
It is important to realizethat in the context of real organizations there may be a "dark side"
to a strong team identity. Identification with the immediate work unit allows employees to
feel that their in-group is in some way special and distinct from others (see Haslam, 2001).
However, cooperation with other groups is at stake, and it is there that the risk of intergroup
conflict arises. Hennesy and West (1999) argue that for team-based organizations to function
effectively, a balance between identification with the team and with the organization as a
whole is needed. Otherwise, widespread discriminatory in-group favoritism may endanger
intergroup integration, coordination, and cooperation that are vital to organizational effectiveness.
Our study was performed among business students on a learning task. The purpose
was that students would gain knowledge on the subject of the course and thatthey would help
each other in reaching this goal. The learning groups were by no means interdependent in
their task performance. Moreover, the business school as the higher level organization has no
goals that are threatened if the individual teams would try to outperform each other. The
present data are in that respect not representative of most team-based organizations, where
there is at least some coordination and cooperation between teams required to reach
organizational goals.
No support was found for the prediction that the positive outcomes associated with identification
with the team would be enhanced if team members would also identify with their
cultural background. We assumed that team members would feel denied in an important part
of self if they would give up their cultural identity. Brewer (1991), for example, has argued
against focusing on a collective identity because stressing similarities among group members
strengthens distinctiveness needs. However, if a superordinate identity is created that
allows for differences between group members, team members can feel acknowledged in
who they are without necessarily strongly identifying with their original cultures. In this
regard, Harquail and Cox (1993) define an intercultural group climate in terms of tolerance
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for ambiguity, amount of prescriptions with respect to behavior, and having a valuing diversity
norm. Although examination of the written assignments did not give us the impression
that diversity was something that was highly valued by the students, these temporary student
groups are usually not highly prescriptive in terms of their members' behavior, nor do they
have a strong need to avoid uncertainty. Moreover, the duration and the intensity of group
membership in the syndicate groups was probably too limited to make recognition of one's
cultural background vital to well-being and commitment to the group. Future studies may try
to replicate these findings among actual working groups in organizations that are usually
more intensive and have a longer lifetime. Moreover, future research may examine patterns
of identification, affect, and performance over the course of group life to examine whether
initial identity patterns do indeed stabilize over time and have long-lasting effects on the
functioning of diverse groups (Milliken et al., 2003).
In addition to the influence of team members'social identities, we were also interested in
the influence of personality on well-being and performance of employees in intercultural
work groups. Of the five intercultural traits, we only found support for a role of Emotional
Stability and Flexibility. Earlier findings among international students who spent a year
abroad for study purposes also supported the importance of Emotional Stability in the first
phase of adjustment to an intercultural situation (Van Oudenhoven & Van der Zee, 2002). In
the phases of team formation, unstable persons may experience a large amount of distress
facing an unknown, conflictive, and challenging situation. Stable individuals will probably
appraise the intercultural situation as less stressful and will therefore show less negative
emotional reactions to it. The same seems to hold for flexible persons, who generally tend to
perceive new and unknown situations as a challenge rather than as a threat.
Interestingly, the effect of Flexibility on exam grades seemed to be opposite under conditions
of high and low diversity. Whereas in line with our predictions the effect of Flexibility
on grades was positive under conditions of high diversity, the same trait had a negative effect
on performance under conditions of low diversity. Apparently, the low diverse context provided
little challenge to the highly flexible team members, resulting in them becoming bored
and distracting them from putting effort into their study. Indeed, in earlier work, we found
evidence that whereas individuals with high scores on the MPQ revealed less negative cognitive
and affective reactions to high-stress intercultural situations, they responded more negatively
to low-stress situations compared to individuals with low scores on the MPQ (Van der
Zee et al., in press).
One could argue that the individual performance ratings are irrelevant to team functioning
and outcomes and thatFlexibilityissimply relatedto betterperformance on an individual
task. Hence, the intraclass correlation that we found for exam grades was rather low. However,
that does not explain the diversity by personality interaction effect on grades. We
assumed that because the group sessions were explicitly meant to help students mastering
the study materials, the effectiveness of the group process would be reflected in students'
individual grades. Possibly, the overall effects of specific environment on grades were
masked by relatively strong individual differences between team members in how the environment
affected their performance. This does not imply that the environment had no
impact. It seemed to have a clear impact, dependent on team members' personality traits.
No support was found for a relationship between the other three traitsand work outcomes.
Perhaps these traits are more important in the long run. Indeed, the Van Oudenhoven and Van
der Zee (2002) study showed that whereas Emotional Stability was the most potent predictor
in the early phase of adjustment, after 6 months, Cultural Empathy became a significant predictor
of well-being. Over time, stress reduction may become less important, and the more
van der Zee et al. / CULTURAL DIVERSITY IN TEAMS 299
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interpersonal traits gain importance to establish satisfying informal and collaborative relationships
with colleagues in the team.
As predicted, the importance of the traits appeared to be dependent on the level of cultural
diversity. Higher diversity implies a stronger need for cultural learning and induces greater
conflict. Under those conditions, the intercultural traits seem to be more vital to work outcomes.
This finding not only supports our theoretical assumptions--it also points to the
validity of the MPQ (Van der Zee & Van Oudenhoven, 2000, 2001). The moderating role of
diversity on the predictive value of the MPQ dimensions suggests that the instrument is especially
relevant in an intercultural context. Future studies may further examine to which
extent this effect is restricted to diversity in cultures or also holds for differences associated
with other culturally determined differences in perspective, for example, due to professional
background or educational level.
What are the implications of the present findings? First, interventions may be developed
aimed at promoting identification patterns among team members. Social identity theory distinguishes
a number of strategies aimed at reducing problems in intergroup relations by creating
alternative categorizations among individuals (Messick & Mackie, 1989; Tajfel &
Turner, 1986). These strategies can be used to enhance identification with the team. Examples
are the creation of subordinate goals and recategorization. Identification patterns with
social groups can be enforced, for example, by rituals aimed at identification of the group as
an entity, making membership easily recognizable, and focusing on the celebration of a common
goal. Symbols and periodic face-to face gatherings seem to be important means to reach
this purpose, as well as defining the relation of the group with other groups (Lindenberg,
1998). Again, it is important to note that by priming a collective identity, people become
motivated to ensure the welfare of their own group, even at the expense of the welfare of
other groups. It is therefore important to not only emphasize the team level but also pay
attention to the broader organizational context.
Finally, with respect to personality, the MPQ (Van der Zee & Van Oudenhoven, 2001,
2002) could be used for the assessment of training needs of employees who have to perform
their work in intercultural teams. Until now, despite an increasing attention for assessment
issues related to global assignments, organizations pay little attention to competencies in
dealing with an intercultural context when it comes to culturally diverse teams in the local
firm. Apparently, the assumption or the norm is that employees from different cultural backgrounds
willassimilatein the dominant culture of the organization. To be able to fully benefit
from the creative potential of a diverse work force, it seems important to pay attention to
competencies that minority and majority members need to possess to facilitate constructive
interactions.
NOTES
1. The intraclass correlation (ICC) is the proportion of the Level 2 variance compared to the total variance. As
can be derived from Table 1, the variance within groups is .068 and the variance between individuals is .376, respectively;
ICC = .068/(.068 + .376) = .15.
2. The values correspondingto low and high levels of diversity and identification with one's cultural background
were computed by taking for each variable one standard deviation above (high) and below (low) the mean and computing
the y value from the equation represented in Model 3 in Figure 1. Thereby, y values corresponding with low
and high levels of diversity and cultural identification were computed for a mean level of identification with the
300 JOURNAL OF CROSS-CULTURAL PSYCHOLOGY
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team. For example, for a low level of diversity (SD = .25) and identification with the team (SD = .63), and a mean
level of identification with the team (M = 0), the equationbecomes: y(well-being)= (­.479× ­.25)+ (­.053× ­.63)+
(­.499 × ­.25 × ­.63) = .074. Note that the resulting y value represents a centered score and corresponds to a raw
score of 4.15 + .074 = 4.224.
3. For reasons of clarity, the parsimonious model is not included in the table.
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302 JOURNAL OF CROSS-CULTURAL PSYCHOLOGY
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Karen van der Zee is a professor of organizational psychology at the University of Groningen. In 1996 she
received her Ph.D. in social psychology at the same university. Her current research interest is in the influence
of personality, threat, and social identities on work outcomes in culturally diverse teams. In addition,
her work focuses on selection and (personality) assessment, as well as on personality predictors of
successful expatriation.
Nelleke Atsma is a lieutenant junior grade in the Royal Netherlands Navy and works as a researcher at the
Department of Behavioral Sciences. She studied work, organization, and personnel psychology at the University
of Groningen anddidher dissertationat the Work andOrganizationalPsychology Groupat the Aston
Business School in Birmingham. Her research interests include cross-cultural issues in organizations and
the turnover of personnel.
Felix Brodbeck is a professor of social and organizational psychology at Aston Business School, Birmingham,
UK. He received his Ph.D. in 1993 at the University of Giessen in Germany and his Habilitation in
1999 at the University of Munich, also in Germany. His research interests include leadership, cross-cultural
issues, decision making, and learning in groups and organizations--all related to effectiveness and wellbeing
in business.
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