Having diversity of thought among the leadership team is usually regarded as a positive, Houston researchers found that conflict can cause more harm than good. Photo via Getty Images

For the past 40 years, management researchers have assumed that diversity of opinion about company strategy, even when it causes conflict among senior managers, leads to higher-quality strategic decisions and improved firm performance.

It turns out there isn’t evidence to support that belief.

Rice Business Professor Daan Van Knippenberg has spent his career studying topics related to team performance, decision making, diversity and conflict. When a research team led by Codou Samba, an assistant professor at the University of Tennessee, Knoxville, approached him with an offer to test longstanding assumptions about conflict related to company strategy in senior management teams, he jumped at the opportunity.

In his experience, the business case for diversity is strong, but it comes with caveats. “Diversity of perspectives can lead to better solutions to complex problems, but only when team members are open-minded enough to listen carefully to each other and really integrate another point of view into their decision-making process,” he says. This does not seem to apply to differences in opinion about what company strategy should be.

When managers dig in their heels and refuse to consider and integrate other perspectives, that two-way door of communication slams shut and conflict ensues. “The popular idea that conflict is actually good for firms went against all my knowledge,” says Van Knippenberg. “It’s annoying that this idea has floated around in my field for so long when the evidence really points the other way.”

The team led by Samba, which also included C. Chet Miller, a professor at the University of Houston, conducted a quantitative summary and integration of 78 papers that provide data about strategic dissent — a term used to describe diverging opinions about strategic goals and objectives on senior management teams — and its influence on strategic decision making and firm performance.

Every paper that made a prediction about strategic dissent (only a few did not) posited that strategic dissent leads to better outcomes for firms.

In their paper, “The impact of strategic dissent on organizational outcomes: A meta-analytic integration,” the research team used a deep well of empirical data to demonstrate that the opposite is true. Turning common wisdom on its head, they found that strategic dissent among senior managers actually leads to lower-quality decisions and impaired firm performance.

The authors identify two major reasons for the negative impact of strategic dissent on firm outcomes.

First, strategic dissent causes relational breakdown among senior managers. “If managers walk away from a team meeting thinking they just had a conflict instead of a productive discussion, the outcome is rarely positive,” says Van Knippenberg. The two sides retreat into their respective corners, believing the other side to be wrong and closing their minds to further information.

Second, strategic dissent leads to less relevant information being exchanged among managers. Inevitably, this blockage impairs the decision-making process. If a marketing director and an operations director are at odds, for example, they are less likely to share the marketing- or operations-specific information that is needed to make an optimal team decision.

Teams can benefit from diversity of thought, but it is not always clear what conditions need to be in place for that to happen on senior management teams that disagree about the firm’s strategic direction. CEOs — the leaders of senior management teams — would do well to realize that it takes an effortful investment to foster open-minded discussions of diverging views on the organization’s strategy, to create an environment that encourages members to express dissenting perspectives while absorbing the perspectives of others, and to prevent vested interest and power dynamics from determining the outcomes of such discussions.

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This article originally ran on Rice Business Wisdom and was based on research from Daan Van Knippenberg, the Houston Endowed Professor of Management at the Jones Graduate School of Business at Rice University, C. Chet Miller, the C.T. Bauer Professor of Organizational Studies at C. T. Bauer College of Business at the University of Houston, and Codou Samba, an assistant professor at Haslam College of Business at the University of Tennessee, Knoxville.

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5 Houston-area companies named among world's most innovative for 2026

In The Spotlight

Led by Conroe-based Hertha Metals, five organizations in the Houston area earned praise on Fast Company’s list of the World’s Most Innovative Companies of 2026.

Hertha Metals ranked No. 1 in the manufacturing category.

Last year, Hertha unveiled a single-step process for steelmaking that it says is cheaper, more energy-efficient and just as scalable as traditional steel manufacturing. It started testing the process in 2024 at a one-metric-ton-per-day pilot plant.

At the same time, Hertha announced more than $17 million in venture capital funding from investors such as Breakthrough Energy, Clean Energy Ventures, Khosla Ventures, and Pear VC.

“We’re not just reinventing steelmaking; we’re redefining what’s possible in materials, manufacturing, and national resilience,” Laureen Meroueh, founder and CEO of Hertha, said at the time.

Meroueh was also recently named to Inc. Magazine's 2026 Female Founders 500 list.

Hertha, founded in 2022, says traditional steelmaking relies on an outdated, coal-based multistep process that is costly, and contributes up to 9 percent of industrial energy use and 10 percent of global carbon emissions.

By contrast, Hertha’s method converts low-grade iron ore into molten steel or high-purity iron in one step. The company says its process is 30 percent more energy-efficient than traditional steelmaking and costs less than producing steel in China.

Last year, Hertha said it planned to break ground in 2026 on a plant capable of producing more than 9,000 metric tons of steel per year. In its next phase, the company plans to operate at 500,000 metric tons of steel production per year.

Here are Fast Company’s rankings for the four other Houston-area organizations:

  • Houston-based Vaulted Deep, No. 3 in catchall “other” category.
  • XGS Energy, No. 7 in the energy category. XGS’ proprietary solid-state geothermal system uses thermally conductive materials to deliver affordable energy anywhere hot rock is located. While Fast Company lists Houston as XGS’ headquarters, and the company has a major presence in the city, XGS is based in Palo Alto, California.
  • Houston-based residential real estate brokerage Epique Realty, No. 10 in the business services category. Epique, which bills itself as the industry’s first AI brokerage, provides a free AI toolkit for real estate agents to enhance marketing, streamline content creation, and improve engagement with clients and prospects.
  • Texas A&M University’s Nanostructured Materials Lab in College Station. The lab studies nano-structured materials to make materials lighter for the aerospace industry, improve energy storage, and enable the creation of “smart” textiles.
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This article first appeared on our sister site, EnergyCapitalHTX.com.

UH lands $11.8M for first-of-its-kind early language development study

speech funding

Researchers at the University of Houston have secured an $11.8 million grant from the National Institutes of Health to conduct a first-of-its-kind study of early language development.

Led by Elena Grigorenko, the Hugh Roy and Lillie Cranz Cullen Distinguished Professor of Psychology, and research professor Jack Fletcher, the study will follow 3,600 children aged 18 to 24 months to uncover how language skills develop at this critical stage and why some children experience delays that can influence later growth.

The NIH funding will also support the development of the new national Clinical Research Center on Developmental Language Disorders at UH, which aims to bring experts from psychology, education, health and measurement sciences to study how children learn language.

“This will be the first national study to estimate how common late talking is using a large, representative sample of Houston toddlers,” Grigorenko said in a news release. “By following these children as they grow, we hope to better understand the developmental pathways that can lead to conditions such as developmental language disorder and autism.”

UH’s team will partner with the pediatric clinic network at Texas Children’s Hospital, where children will be screened for early language development, allowing researchers to identify those who show signs of delayed speech. Next, researchers will follow the cohort through early childhood to examine how language abilities evolve and how early delays may lead to later challenges.

The Clinical Research Center on Developmental Language Disorders will be the 14th national research center established at UH, and will include researchers from multiple UH departments, as well as partners at Baylor College of Medicine and the Texas Center for Learning Disorders.

“This level of investment from the National Institutes of Health reflects the significance of this work to address a complex challenge affecting children, families and communities,” Claudia Neuhauser, vice president for research at UH, said in a news release. “By bringing together experts from multiple disciplines and partnering with major health systems across the region, the project reflects our commitment to advancing discoveries that impact our community.”

Rice Alliance names Houston healthtech exec as first head of platform

new hire

The Rice Alliance for Technology and Entrepreneurship has named its first head of platform.

Houston entrepreneur Laura Neder stepped into the newly created role last month, according to an email from Rice Alliance. Neder will focus on building and growing Houston’s Venture Advantage Platform.

The emerging platform, which is being promoted by Rice Alliance and the Ion, aims to connect founders with the "people, capital and expertise they need to scale."

"I’ve spent a lot of time thinking about what it takes to make an innovation ecosystem more navigable, more connected, and more useful for founders," Neder said in a LinkedIn post. "I’m grateful for the opportunity to do that work at Rice Alliance, alongside a team with a long history of supporting entrepreneurship and innovation."

"Houston has the talent, institutions, and industry base to create real advantage for founders," she added. "I’m looking forward to listening, learning, and building stronger pathways across the ecosystem."

Neder most recently served as CEO of Houston-based Careset, where she helped bring the Medicare data startup to commercialization. Prior to that, Neder served as COO of Houston-based telemedicine startup 2nd.MD, which was acquired for $460 million by Accolade in 2021.

"Laura brings a rare combination of founder empathy, operational experience and ecosystem leadership," Rice Alliance shared.

Neder and Rice Alliance also shared that the organization is hiring developers to design the new Venture Advantage Platform. Learn more here.