Cross-Functional Product Development Teams, Creativity, and the Innovativeness of New Consumer Products

Abstract

Multiple studies have found that the primary determinant of new product failure is an absence of innovativeness—the extent to which a new product provides meaningfully unique benefits. Given the persistence of this finding and the growing use of cross-functional teams in new product development projects, the authors examine how innovativeness is affected by various characteristics of cross-functional teams and contextual influences on the team. On the basis of a study of 141 cross-functional product development teams, the authors find that innovativeness is positively related to the strength of superordinate identity in the team, encouragement to take risk, customers' influence, and active monitoring of the project by senior management. Beyond a moderate level, social cohesion among team members has a negative effect on innovativeness. The effect of superordinate identity on innovativeness is strengthened by encouragement to take risk and weakened by social cohesion. Functional diversity has no effect on innovativeness. The authors discuss managerial and research implications of the findings.