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Cultural group diversity and team performance: The importance of international employees

Guan‐Yuan Wang

Scottish Journal of Political Economy, 2025, vol. 72, issue 3

Abstract: In the ongoing debates regarding performance disparities between homogeneous and heterogeneous teams, we examine team dynamics within the National Basketball Association to provide insights into this issue. Utilizing Shannon entropy, we measure the cultural diversity of player nationalities within each team. Through panel data modeling with interactive and mediating effects, we empirically investigate the impact of workforce diversity on team performance. Our findings reveal that diversity influences team success through both offensive performance and defensive effort. Importantly, our results highlight a positive relationship between team heterogeneity and win percentages, underscoring the advantages of diversity in enhancing overall team performance.

Date: 2025
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https://doi.org/10.1111/sjpe.12411

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Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

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