This paper uses the status inconsistency theory to identify factors related to team members' (dis)satisfaction with the composition of virtual IT project teams in order to predict their turnover intentions. Our approach is based on the premise that vi...
This paper uses the status inconsistency theory to identify factors related to team members' (dis)satisfaction with the composition of virtual IT project teams in order to predict their turnover intentions. Our approach is based on the premise that virtual teams, although increasingly popular among global organizations, create an environment replete with cultural and functional diversity. Yet, a paradox exists: increasing diversity in virtual teams maximizes the creation and use of organizational knowledge while simultaneously increasing dissatisfaction and turnover. This is a critical issue in the formation and management of virtual teams. Therefore, we investigate how team members' perceptions of differences among themselves (i.e. foreignness) impact the stability of team membership, leading to what we describe as a 'liability of foreignness.' Findings indicate that a member's perception of foreignness has a detrimental effect on satisfaction with his or her team members while satisfaction is likely to decrease turnover intention. This may be an implication that managers need to maintain a balance in order to discourage member turnover and the loss of key players.