cs.MAApr 23, 2026

Role of diversity in team performance: the case of missing expertise, an agent based simulation

Authors: Tamás Kiss

Organizations: Department of Computational Sciences Wigner Research Centre for Physics Hungarian Research Network

Abstract

Theory and empirical research on management teams' influence on firm performance have witnessed continuous development, and by now incorporate numerous details. Classic, experiment-based studies examining social systems collect vast amount of data, but often times investigate only the first one or two modes of the distribution of measured variables, and experience difficulty in analyzing the effect of context. For example, in functional diversity research, management teams are described by measures incorporating complex distributions of capabilities of individual managers and teams of managers. To investigate the effect of hidden distributions, and the effect of functional diversity composition on team communication and performance, we developed an agent-based model, and conducted a series of simulation experiments. Modeling results show that depending on the context, such as communication scheme among interacting agents, or their functional composition, intrapersonal functional diversity (IFD), and dominant function diversity (DFD) might enhance or reduce performance and communication among agents. Furthermore, simulation results also suggest that a third measure is required alongside IFD and DFD capturing the aggregate expertise of the team to comprehensively account for empirical findings.

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