Despite accumulative research uniformly demonstrating that relationship conflict harms team performance, there is a dearth of knowledge on how to address it effectively. In this study, we contribute to research on the microfoundations of organizational paradox by exploring the role of paradox mindset in mitigating the negative effects of relationship conflict. We propose that team members with a high paradox mindset actively embrace and examine conflicting perspectives and interpersonal tensions. This proactive approach to tensions allows the team to effectively address, rather than avoid, relationship conflicts, leading to increased potency, which enhances performance.. We tested our theoretical model in a longitudinal study comprising 60 diverse MBA teams, which intensively worked on various tasks for eight weeks and competed in a concluding hackathon. We show that relationship conflict diminishes team potency and performance. However, the presence of high paradox mindset team members buffers against these negative effects because these members facilitate information exchange while scrutinizing and reconciling conflict effectively. Our findings underscore the pivotal role of paradox mindset in harnessing interpersonal tensions.
