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We draw on expectation theory (Merton, 1948; Rosenthal, 1966) and exchange theory (Blau, 1964) to explain why some groups perform better than others. We test our hypotheses by following 79 Chinese work groups over time. Results show that the task dimension of members’ expectations plays a critical role, affecting both group processes and outcomes. Further, group potency moderates the relationship between expectation fulfillment and group performance. Practical and theoretical implications of our findings are discussed.

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