When we unite, not divide: status homophily, group average status, and group performance in the Korean film industry

Abstract

This study examines how status conflicts serve as a mechanism underlying the negative impact of status homophily on group performance. In short-term project groups without well-established local status hierarchies, status homophily among members can lead to status conflicts, thereby diminishing group performance. However, we argue that the intensity of these status conflicts differs based on the average status of group members. A group of middle status, which on average comprises members of this status, focuses on both global and local status attainments and, as a result, experiences fewer status conflicts compared to high- and low-status groups, whose members predominantly concentrate on local status attainments. We tested our hypotheses in the Korean film industry from 2004 to 2017. The statistical findings indicate that status homophily among performers was negatively related to commercial success. However, films mainly featuring middle-status performers witnessed a positive effect of status homophily.