A Cross-Level Analysis of Innovation Project Team Members’ Functioning under Stress

Abstract

Innovating activities are affected by a multitude of stressors. Although their impact on innovation project teams’ performance is increasingly investigated in stress literature, their influence on team members’ ability to incorporate their skills and knowledge to their project, thereby contributing to team performance, however, remains largely untested. By drawing on a multi-informant cross-level research design on 121 innovation projects in the electronics industry, this study identifies significant negative interaction terms for the moderating influence of cross-functionality on the effect of three resource stressors, i.e., retrenchment of personnel, budget, and equipment, on the individual-level outcome skill utilization. Contrary to expectations, the contingency variable cross-functionality does not moderate the relationship of the fourth examined resource stressor, i.e., retrenchment of time, and the individuals’ ability to leverage their full potential during teamwork. Resulting theoretical and practical implications are discussed.