Compositional gaps and downward spirals in international joint venture management groups

We argue that compositional gaps in international joint venture (IJV) manag ement groups, along parent company lines, will accentuate distinct manageri al coalitions. Such gaps can occur on dimensions of observable demography, less apparent demography, or psychological characteristics. While compositi onal gaps in IJV management groups can provide the basis for healthy substa ntive conflict, such gaps-particularly if they are large-also tend to induc e relationship conflict and heighten substantive conflict beyond its benefi cial range. This can set off a downward spiral of relationship conflict, su bstantive conflict, and behavioral disintegration in the group. These harmf ul group processes further interact reciprocally with any tensions that mig ht exist between the IJV parents, engendering a second downward spiral. Our model has implications for the performance of international joint ventures , and it serves as a foundation for designing interventions to avoid the do wnward spirals we portray. Copyright (C) 2001 John Wiley & Sons, Ltd.