This study investigates the relationship among trust, functional diversity, and team performance in a virtual environment. The authors conducted research on more than 200 team members representing 33 virtual teams and found that both trust and functional diversity had a direct impact on team performance using team member ratings; however, neither had a direct impact on team performance using external manager ratings. Instead, trust was found to moderate the functional diversity to performance relationship using the managers' ratings. Differences in the development of trust between virtual teams and face-to-face teams are also discussed, as are the implications that the results of this study may have on organizations, managers, and team members.
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