Previous research on groups with diverse membership indicates that they generally exhibit high levels of conflict and experience low levels of cohesion; however, they also tend to outperform their homogeneous counterparts. Based on an extensive review of three research streams-group diversity, group development and collaborative technologies-we develop an integrated model of ongoing team interaction which describes how collaborative technologies can help leverage the positive aspects of diversity while limiting its negative aspects. We then test this model using a longitudinal field experiment involving virtual and collocated teams with differing levels of diversity. We conclude by discussing the results and examining their implications for research and practice.