The Effect of Functional Diversity on Team Creativity: Behavioral and fNIRS Evidence

Variation in functional expertise is an important decision that managers face when designing teams tasked with being creative. We develop theory that predicts that functional diversity has countervailing effects on team creativity through its positive (negative) effect on the uniqueness (usefulness) of the proposals generated. We conduct an experiment where functionally homogeneous or heterogeneous two-person teams are tasked with proposing a creative use for an unused university space. We measure the uniqueness, usefulness, and overall creativity of team proposals. We also use functional near-infrared spectroscopy (fNIRS) neuroimaging technology to investigate the underlying team cognitive processes. Measured outcomes and fNIRS data support our predictions. Combining conventional experiment and advanced neuroimaging techniques, our study informs theory and practice by providing evidence of how functional diversity affects team creativity. This paper was accepted by Suraj Srinivasan, accounting. Funding: This work was supported by the National Natural Science Foundation of China (NA) [Grant 72172132] and CPA Ontario’s Centre for Sustainability Reporting and Performance Management (NA). Supplemental Material: The online supplemental appendix and data files are available at https://doi.org/10.1287/mnsc.2023.02157 .