Grounded in information processing theory and social exchange theory, this study examines the relationship between two types of supervisor-subordinate relational schema (SSRS) dissimilarity (encompassing affective and instrumental dimensions) and differential conflict avoidance in indigenous team contexts, while exploring the underlying mechanisms and boundary conditions. Using a multi-wave research design and analyzing 920 survey responses from 158 teams, the findings reveal that: (1) Affective relational schema dissimilarity and instrumental relational schema dissimilarity among team members positively influence differential conflict avoidance; (2) Differential supervisor-subordinate relationships among team members mediate the link between affective SSRS dissimilarity and differential conflict avoidance; (3) Team diversity negatively moderates the relationship between SSRS dissimilarity and differential supervisor-subordinate relationship; (4) Team diversity further moderates the effect of SSRS dissimilarity on differential conflict avoidance via differential supervisor-subordinate relationship.