Perceived cultural differences and performance in global virtual teams: a socio-cognitive perspective

Global virtual teams (GVTs) have become an increasingly common form of global work, presenting both opportunities and challenges for international human resource management. While previous research highlights the influence of cultural differences on GVT performance, the findings have been inconsistent. These mixed findings suggest the presence of overlooked moderating and mediating effects, particularly regarding how cultural differences are perceived and interpreted beyond their structural presence in GVT environments. This issue is especially relevant in early-stage, project-based GVTs, where perceptions of cultural differences can emerge before extensive teamwork occurs. Thus, we adopt a socio-cognitive perspective and integrate social categorization theory with construal level theory. We develop a moderated mediation model in which initial perceptions of cultural differences in GVTs relate to subsequent collective efficacy, which in turn predicts GVT performance, with dispersion in lingua franca proficiency moderating these relationships. Using a multi-wave and multi-source dataset of 800 GVTs, our results support our hypotheses. Results show that perceived cultural differences are not directly associated with GVT performance but show an indirect negative association through lower collective efficacy. This effect is amplified in GVTs with greater dispersion in lingua franca proficiency. We discuss theoretical and practical implications and point toward future research.