Perceived Subgroups, TMS, and Team Performance: The Moderating Role of Guanxi Perception

As teams become increasingly common for organizations to accomplish key objectives, improving team performance is a critical challenge for both practitioners and researchers. As researchers have converged on the notion that team performance is strongly influenced by subgroups, scholars have begun to explore how perception of subgroups influence team performance. Thus, in this study, we examined how perceived subgroups influenced the team transactive memory system (TMS), and hence team performance. We also proposed the moderating role of guanxi perception on the relationship between perceived subgroups and TMS. Utilizing two-wave multi-source data from 87 working teams in a Chinese central government-owned corporation, and based on multiple (moderator) hierarchical regression analyses, our results demonstrated that perceived subgroups were a negative predictor of TMS and team performance, and TMS mediated the negative relationship between perceived subgroups and team performance. That is, perceived subgroups inhibited team performance by blocking the development of a robust TMS. In addition, guanxi perception acted as a positive moderator, mitigating the negative relationship between perceived subgroups and TMS. Furthermore, the moderated mediation analysis of the integrative model revealed that the indirect effect of perceived subgroups on team performance via TMS was contingent on guanxi perception. Overall, our findings identified the pivotal role of perceived subgroups, TMS, and guanxi perception in working teams in the Chinese context.