Offshore-Onsite Subgroup Dynamics in Globally Distributed Teams

Purpose: The increased use of distributed work arrangements across organizational and national borders calls for in-depth investigation of subgroup dynamics in globally distributed teams (GDTs). Here we study GDTs where individuals work “around the clock” or operate as a “24 hour knowledge factory”. Our research question is: “How do subgroups dynamics unfold when individuals share knowledge during the hand-off process?”Methodology/Approach: We conducted a qualitative study of 8 GDTs working around the clock, in Indian organizations involved in offshoring of knowledge intensive work. Findings: Our evidence shows that the process of knowledge sharing during hand-offs is hampered by the emergence of status differentials across subgroups whose members hold similar expertise, position, organizational affiliation, and ethnicity. The negative effect of status differentials is mitigated by the perception of closeness with an external party – the client. Practical implications: Our work has practical implications for organizations that want to use GDTs to achieve a faster (and cheaper) development of products and services. To make a GDT work around the clock, an organization should not only place attention to technical issues (e.g., sophisticated and rich collaborative technologies), but also to potentially disrupting subgroup dynamics (e.g., the role played by the client in team identification processes).Originality/value of paper: Overall, this work contributes to a better understanding of the interplay between status differentials, synchronization of work practices, and knowledge transfer in GDTs.Paper classification: Research pape