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Examining the Dynamics of Diversity, Equity, and Inclusion In Team Performance

Abstract

As Diversity, Equity, and Inclusion (DEI) initiatives face increasing scrutiny, it is important to understand how these factors affect team dynamics and performance. This study examines how DEI, both individually and collectively, influences subjective team performance. We hypothesize that these factors affect experiences of inclusion and perceptions of equity, which in turn impact team functioning and performance. Guided by the Input-Process-Output (IPO) framework and Social Identity Theory, DEI was examined as a process where ethnic diversity served as the input, shaping team members’ social identities and influencing experiences of inclusion and perceptions of equity, which then impacted team outcomes. The analysis involved multivariate regression, ANOVA, and Structural Equation Path Analysis Modeling, clustered by team. Results revealed that teams with medium diversity reported higher subjective performance compared to teams with low or high diversity. Inclusion was a strong predictor of team subjective performance, whereas equity was not a significant predictor. Although the structural equation model did not achieve an ideal fit when examining DEI as a whole, it provided preliminary insights into the interactions among DEI variables. Thus, this study opens the dialogue for further research on how the different components of DEI interact and influence team performance.