Healthy Divide or Detrimental Division? Subgroups in Virtual Teams

Abstract

Subgroup formation, the emergence of smaller groups within teams, has been found to be detrimental to teamwork in virtual teams. Recently, however, an alternative view of the effects of subgroup formation proposes that the formation of subgroups is not always bad. When subgroups are based on identity characteristics like race and gender they are likely to have negative effects, but when they are not, subgroups can have positive effects on teamwork. This paper empirically examines this proposition. Results of our study generally support the proposed assertion. When subgroups are not based on race or gender they are positively associated with perceptions of social integration and open communication. However, when they are based on race and gender they are negatively associated with perceptions of social integration and open communication. The implications of this study demonstrate that subgroups may in many cases be beneficial rather than detrimental to virtual teams.