Integrating the literature on faultlines, conflict, and pay, we drew on the basic principles of multilevel theory and differentiated between group- and organizational-level faultlines to introduce a novel multilevel perspective on faultlines. Using multisource, multilevel data on 30 Major League Baseball (MLB) teams, we found that group-level faultlines were negatively associated with group performance, and that internally focused conflict exacerbated but externally focused conflict mitigated this effect. Organizational-level faultlines were negatively related to organizational performance, and were most harmful in organizations with high levels of compensation. Implications for groups and teams in the sports/entertainment and other industries are discussed.
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Bezrukova et al. (2015) studied this question.
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