The hypothesis derived from Social Identity Theory that strength of group identification would be positively correlated with intergroup differentiation is tested. Data was obtained from 55 workers in a bakery using semistructured interviews. Analysis showed clear differentiation between the factory departments by subgroups of workers along dimensions of perceived contribution to the running of the factory and expressed friendliness towards out-groups. However, multiple regression analyses revealed that the relationship between group identification and intergroup differentiation was not consistently positive but varied between subgroup and between attitude dimensions. The most reliable predictor of differentiation, consistent with Realistic Conflict Theory, was perceived conflict between ingroup and outgroups.
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