Author(s): Kanwal Iqbal Khan, Mário Nuno Mata, Fatima Hameed Khan, José Moleiro Martins, João Xavier Rita, Rui Miguel Dantas.
Team diversity has emerged as an essential concept in the field of project management. In a diverse climate, team members have different thinking capacities, knowledge, perspectives, and strategies that help to create new ideas. But sometimes, this diversity causes conflicts among the team members, ultimately creating tension, resentment, and loathing behavior at the workplace. Therefore, the current study attempts to understand the relationship between team diversity (knowledge, value) and project performance through trust and absorptive capacity. Data were collected from team members involved in IT (Information Technology) projects. Findings reveal that team diversity enhances project performance through trust and absorptive capacity. But the relationship is partially mediated in the case of value diversity and fully mediated with knowledge diversity. This study contributes to the IT sector, where dynamic team members utilize their innovative capabilities and problem-solving skills for achieving project success