Role of diversity in team performance: the case of missing expertise, an agent based simulation

Tamás Kiss's new agent-based simulation, detailed in arXiv:2604.21328, models how functional diversity within management teams impacts performance and communication. The study moves beyond classic experiment-based research by simulating complex distributions of individual manager capabilities. Results show that intrapersonal functional diversity (IFD) and dominant function diversity (DFD) do not have fixed effects—they can enhance or reduce team performance depending on context, such as the communication scheme among agents or their functional composition.

Crucially, the simulation suggests that existing diversity metrics are insufficient. A third measure capturing the aggregate expertise of the team is required to fully account for empirical findings. This challenges conventional wisdom that diversity always boosts performance. The model includes 20 pages of analysis and 13 figures, with associated code available online. For tech professionals, this implies that AI-driven team composition tools may need to weigh expertise depth alongside diversity breadth for optimal outcomes.