Organizational Demographic Faultlines: Their Impact on Collective Organizational Identification, Firm Performance, and Firm Innovation

In this study, we seek to understand the consequences of demographic faultlines at organizational level. Drawing from faultline and cross-categorization literature, suggest that (based on age gender) have potential either reduce or enhance employees’ collective identification and, thereby, indirectly influence firm performance innovation. Whether detrimental beneficial effects depends functional heterogeneity within faultline-based subgroups, where is defined as extent which subgroup members belong different departments. We theorize alters degree social integration between subgroups. Results a multisource field study among 5,495 employees in 82 small medium-sized firms (<250 employees) support our model. demonstrate important consequences, show changes whether these are negative positive.