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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Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.

5 Houston scientists named winners of prestigious Hill Prizes 2026

prized research

Five Houston scientists were recognized for their "high-risk, high-reward ideas and innovations" by Lyda Hill Philanthropies and the Texas Academy of Medicine, Engineering, Science and Technology (TAMEST).

The 2026 Hill Prizes provide seed funding to top Texas researchers. This year's prizes were given out in seven categories, including biological sciences, engineering, medicine, physical sciences, public health and technology, and the new artificial intelligence award.

Each recipient’s institution or organization will receive $500,000 in direct funding from Dallas-based Lyda Hill Philanthropies. The organization has also committed to giving at least $1 million in discretionary research funding on an ad hoc basis for highly-ranked applicants who were not selected as recipients.

“It is with great pride that I congratulate this year’s Hill Prizes recipients. Their pioneering spirit and unwavering dedication to innovation are addressing some of the most pressing challenges of our time – from climate resilience and energy sustainability to medical breakthroughs and the future of artificial intelligence,” Lyda Hill, founder of Lyda Hill Philanthropies, said in a news release.

The 2026 Houston-area recipients include:

Biological Sciences: Susan M. Rosenberg, Baylor College of Medicine

Rosenberg and her team are developing ways to fight antibiotic resistance. The team will use the funding to screen a 14,000-compound drug library to identify additional candidates, study their mechanisms and test their ability to boost antibiotic effectiveness in animal models. The goal is to move toward clinical trials, beginning with veterans suffering from recurrent infections.

Medicine: Dr. Raghu Kalluri, The University of Texas MD Anderson Cancer Center

Kalluri is developing eye drops to treat age-related macular degeneration (AMD), the leading cause of vision loss globally. Kalluri will use the funding to accelerate studies and support testing for additional ocular conditions. He was also named to the National Academy of Inventors’ newest class of fellows last month.

Engineering: Naomi J. Halas, Rice University

Co-recipeints: Peter J. A. Nordlander and Hossein Robatjazi, Rice University

Halas and her team are working to advance light-driven technologies for sustainable ammonia synthesis. The team says it will use the funding to improve light-driven catalysts for converting nitrogen into ammonia, refine prototype reactors for practical deployment and partner with industry collaborators to advance larger-scale applications. Halas and Nordlander are co-founders of Syzygy Plasmonics, and Robatjazi serves as vice president of research for the company.

The other Texas-based recipients include:

  • Artificial Intelligence: Kristen Grauman, The University of Texas at Austin
  • Physical Sciences: Karen L. Wooley, Texas A&M University; Co-Recipient: Matthew Stone, Teysha Technologies
  • Public Health: Dr. Elizabeth C. Matsui, The University of Texas at Austin and Baylor College of Medicine
  • Technology: Kurt W. Swogger, Molecular Rebar Design LLC; Co-recipients: Clive Bosnyak, Molecular Rebar Design, and August Krupp, MR Rubber Business and Molecular Rebar Design LLC

Recipients will be recognized Feb. 2 during the TAMEST 2026 Annual Conference in San Antonio. They were determined by a committee of TAMEST members and endorsed by a committee of Texas Nobel and Breakthrough Prize Laureates and approved by the TAMEST Board of Directors.

“On behalf of TAMEST, we are honored to celebrate the 2026 Hill Prizes recipients. These outstanding innovators exemplify the excellence and ambition of Texas science and research,” Ganesh Thakur, TAMEST president and a distinguished professor at the University of Houston, added in the release. “Thanks to the visionary support of Lyda Hill Philanthropies, the Hill Prizes not only recognize transformative work but provide the resources to move bold ideas from the lab to life-changing solutions. We are proud to support their journeys and spotlight Texas as a global hub for scientific leadership.”

Investment bank opens new Houston office focused on energy sector

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

  • Energy systems such as nuclear and geothermal
  • Energy supply chains
  • Energy-transition fuel and technology
  • Traditional energy
“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

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This article originally appeared on EnergyCaptialHTX.com.