We　analyze　how　intra-group　culture　diversity　affect　group　affiliated　firm’s　innovation.　Our　findings　suggest　that　the　more　inconsistency　on　risk　preference　among　affiliated　firms　in　one　group,　the　less　impact　of　affiliated　firm’s　own　risk　culture　on　innovation.　Specifically,　we　document　that　intra-group　culture　diversity　impedes　individual　affiliated　firm’s　innovation　through　managerial　and　controlling　agency　problems.　The　heterogeneity　test　shows　that　size,　executives,　headquarter　connected,　location,　state　ownership　and　information　quality　of　affiliated　firms　can　affect　intra-group　culture　diversity　on　innovation.　We　prove　that　intra-group　culture　diversity　impedes　innovation　on　group　affiliated　firms,　which　means　a　dark　side　of　business　group　affiliation.　©　2023　The　Author(s).　Published　by　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.