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Purpose

This study aims to develop a theoretical integrated model examining the role of the co-occurrence of task and relationship conflict (CTRC) as a mediator in the relationship between diversity and group effectiveness. The model also examines transformational leadership (TFL) as a moderator in this relationship.

Design/methodology/approach

Data were collected using a questionnaire survey from 354 faculty in 56 workgroups from three private universities in the Middle East. SEM and hierarchical regression analysis were used to test the suitability of the model and its hypotheses.

Findings

The results revealed that TFL moderated diversity's direct effect on CTRC as well as the indirect effect linking diversity, CTRC, and group effectiveness. Specifically, diversity had an inverted U-shaped relationship with CTRC in groups with low TFL, but a negative linear relationship in those with high TFL.

Originality/value

The findings expand understanding of how, and under what conditions, diversity influences group effectiveness by: offering a fresh treatment of this relationship, introducing CTRC as a bivariate construct and bringing into focus the centrality of its harmful effect on this association, and highlighting the influence of TFL in ameliorating this harmful effect.

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