Managing Boundaries within Organizations

In this study, we seek to understand the consequences of demographic faultlines at the organizational level. Drawing from the faultline and cross-categorization literature, we suggest that organizational demographic faultlines (based on age and gender) have the potential to either reduce or enhance employees’ collective organizational identification and, thereby, indirectly influence firm performance and innovation. Whether organizational demographic faultlines have detrimental or beneficial effects depends on the functional heterogeneity within faultline-based demographic subgroups, where heterogeneity is defined as the extent to which subgroup members belong to different functional departments. We theorize that this functional heterogeneity alters the degree of social integration between demographic subgroups. Results from a multisource field study of demographic faultlines among 5,495 employees in 82 small and medium-sized firms (< 250 employees) support our model. We demonstrate that organizational demographic faultlines have important consequences, and we show that functional heterogeneity changes whether these consequences are negative or positive.

Drawing from team-level job demands-resources theory, we hypothesize that team workload demands moderate the positive link between team boundary work (i.e., boundary spanning and boundary buffering) and team effectiveness (i.e., team innovation and team performance), such that boundary work is more beneficial for team effectiveness when teams face higher team workload demands. Furthermore, we predict that this interaction occurs through increased team vigor, where team vigor is defined as an affective emergent state characterized by positive valences and high activation levels experienced by team members. We largely find support for our model across two field studies: a cross-sectional survey using three independent data sources (89 automotive research and development teams, including 724 team members, 89 team leaders, and 18 managers) and a time-lagged survey using two independent data sources (139 teams working in a Chinese utility company, including 640 team members and 139 team leaders). Our article contributes to team research by broadening our understanding of when and how team boundary work is associated with greater team effectiveness.