TEAM COMPOSITION, LEADERSHIP AND INFORMATION-PROCESSING BEHAVIOR A simulation game study of the locus-of-control personality trait

In this study, we relate the individual locus-of-control personality trait of team members to the team’s information gathering and processing behavior. We adopt a team information-processing approach arguing that a team’s information-processing capacity is a function of its composition with respect to the members’ locus of control and the leadership structure of the group. We develop models that go beyond analyzing simple main effects of differences in team locus-of-control composition. We hypothesize that (a) the impact of the team locus-of-control mean depends on the within-group locus-of-control diversity, and (b) the effect of both the team locus-of-control mean and its standard deviation is contingent upon the leadership structure of the group. The hypotheses were tested on 44 teams participating in an elaborate international management simulation over six time periods. As predicted, we find that teams with a high average internal locus-of-control score collect more information and make more informed decisions when the within-team locus-of-control spread is low, and when the team operates without a leader. The opposite is the case for teams with a high average external locus-of-control score. In addition, locus-of-control diversity induces team information search only in the case when the team has no leader. We also show that team financial performance is comparably affected by our focal independent team variables. On a general level, our results offer strong support for recent pleas to study theoretically relevant individual traits, use proper aggregation models and include structural moderator variables in team composition research.