Age diversity and team performance – the moderating roles of team LMX quality and differentiation

Purpose This study aims to extend our knowledge of how leadership shapes the consequences of team age diversity. Specifically, we adopt a relational perspective on leadership to examine how two distinct aspects of LMX composition among team leaders and their team members—i.e. team LMX quality and team LMX differentiation—affect the link between age diversity and team performance. Design/methodology/approach Hypotheses are tested via ordinary least squares regression and data for 64 work teams at a major hospital, which were provided by 526 team members and their respective team leaders. Findings Results reveal that team LMX quality and LMX differentiation both qualify the performance implications of team age diversity. While team LMX quality has a positive moderating effect, the moderating influence of team LMX differentiation is negative. Practical implications To reap the performance potential of age diversity, leaders need to serve as role models by investing in high-quality relationships with all their team members. When leading age-homogenous teams, leaders may consider differentiating their LMX relationships. Originality/value The present study contributes to a better understanding of the interplay between leadership and age diversity and helps to extend our knowledge of LMX as a team-level phenomenon.