Abstract The increased use of teams in organizations, coupled with an increasingly diverse workforce, strongly suggests that we should learn more about how team diversity affects functioning and performance. The purpose of this study was to explore the differential impact of surface‐level diversity (gender, ethnicity), deep‐level diversity (time urgency, extraversion), and two moderating variables (team orientation, team process) on relationship conflict over time. Hypotheses were tested by tracking 45 student project teams in a longitudinal design. Results revealed that team orientation and team process moderated the diversity–conflict link. Specifically, team orientation helped to neutralize the negative effects of surface‐level (gender) diversity on relationship conflict. In a similar manner, team processes worked to weaken the deleterious effects of deep‐level diversity (time urgency) on relationship conflict. In addition, relationship conflict resulted in lower perceived performance by team members. Copyright © 2004 John Wiley & Sons, Ltd.
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