Bhardwaj, ArjunMishra, Sushanta KumarQureshi, IsrarKumar, Kunal KamalKonrad, Alison M.Seidel, Marc-DavidBhatt, Babita2023-04-120022-2380http://hdl.handle.net/1885/289144Network theory and research have identified the powerful dynamic of homophily whereby individuals are more likely to connect with similar rather than dissimilar others. However, less is known about when individuals might connect with dissimilar others to enhance organizational diversity benefits and mitigate social exclusion. This study builds upon prior evidence linking homophily to both elite group closure and lower-status self-segregating social withdrawal to propose a new dynamic of middle-status ambivalence toward homophily, generating a greater propensity toward diversity. Indian society offers a unique context of a legally codified, stable, three-tiered status hierarchy to test the idea that middle-status individuals will develop the most diverse networks. Using a unique longitudinal friendship network dataset, we find empirical support for our prediction, a novel contribution extending classic homophily theory. In addition, due to potent status dynamics we theorize and find that lowest-status group members initiate more ties over time but also exhibit lower tie stability and greater losses of early ties than higher-status group members, resulting in the appearance of lowest-status group homophilous withdrawal. Overall, we advance homophily theory and offer practical suggestions for organizations seeking to enhance social ties across diversity and improve the effectiveness of social inclusion policies.This paper draws on research that is sup-ported by funding from the Social Sciences and Humanities Research Council (SSHRC) of Canada, SSHRC Grant No. 410- 2011- 0842. The fifth author is grateful for support from the Corus Entertainment Chair in Women in Management at the Ivey Business School. We would like to thank Priyanka Pandey (World Bank) and Magsaysay Awardee Sandeep Pandey for sharing their valuable insights on the Indian caste hierarchy. An earlier version of the paper was presented at the 2016 meeting of the Academy of Management in Anaheim, Californiaapplication/pdfen-AU© 2021 The Authors. Journal of Management Studies published by Society for the Advancement of Management Studies and John Wiley & Sons Ltd.castehomophilyfriendship tiesmiddle-statuselite closuresocial withdrawaltie seekingtie stability202110.1111/joms.127632022-01-23