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Purpose This study aims to assess the effect of peer evaluations on team-level effort, productivity, motivation and overall team performance. Design/methodology/approach This study explores the impact of a peer evaluation system on 895 multicultural and transnational global virtual teams (GVTs) composed of 5,852 university students from 130 different countries. The study uses a quasi-experiment in which the group project is implemented under two conditions over two sequential iterations. In the first condition, team members do not receive peer evaluation feedback during the project. In the second condition, participants completed detailed peer evaluations of their team members and received feedback weekly for eight consecutive weeks. Findings Results suggest that when peer evaluations are used in GVTs during the project, teams show: higher levels of group effort; lower levels of average productivity and motivation; and no clear evidence of improved team performance. Results cast doubts on the benefits of peer evaluation within GVTs as the practice fails to reach its main objective of improving team performance and generates some negative internal dynamics. Practical implications The major implication of the study for managers and educators using GVTs is that the use of peer evaluations during the course of a project does not appear to improve objective team performance and reduces team motivation and perception of productivity despite increases in teams’ perceptions of effort and performance. Originality/value This study contributes to the scanty literature regarding the impact of peer evaluation systems on group-level dynamics and performance outcomes.

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We examine the effect of group level skills on group processes and collective outcomes in multilingual, multicultural global virtual teams. We test a moderated mediation model in which cultural intelligence (CQ) is found to moderate the relationship between average team perceived English language proficiency, team creativity, and team performance with the variables of elaboration of task information and task conflict serving as mediators in the relationship. Data was gathered from 5,852 people working in 895 teams to test the model. Results show that the average English proficiency of the team is positively associated with both team creativity and overall team performance through the mediator of elaboration of task information. CQ moderates this relationship such that teams high in average CQ are much better at elaborating task information as average team English skills increase while teams with low average CQ experience only minimal increases in task elaboration as English skills increase. The model is not significant, however, when using average levels of task conflict on the team as a mediating variable. CQ does not moderate conflict, and conflict is not significantly related to either creativity or overall team performance. We explore implications for managerial practice and directions for future research. Keywords: GVTs; CQ; English proficiency; elaboration of task-relevant information; task conflict; team creativity; team performance

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