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Purpose

The purpose of this paper is to test a model in which diversity in goal orientation is associated with decreased team performance by virtue of reduced group information elaboration. In addition, the model considers the moderating role of internal team environment.

Design/methodology/approach

The paper takes the form of an empirical research in which the hypothesized relationships are investigated using hierarchical multiple‐regression analyses.

Findings

The findings show that teams high in diversity in goal orientation report lower levels of performance because of the lower group information elaboration. However, in the presence of a supportive team environment the negative relationship of diversity in goal orientation on group information elaboration are reduced.

Research limitations/implications

The paper is based on a cross‐sectional design.

Practical implications

The paper suggests management should consider goal orientation in team building, and provide interventions to improve team environment.

Social implications

Diversity has relevant consequences on interpersonal relations, decision‐making processes, and team performance. The results of the present study suggest ways in which teams might leverage the benefits of diversity and reduce coordination problems associated with it.

Originality/value

This study contributes to the diversity team literature by expanding Nederveen‐Pieterse and colleagues' research on diversity in goal orientation by emphasizing the role of internal team environment as moderator in the relationship between diversity in goal orientation and group information elaboration.

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