Differential leadership, team conflict and new product development performance

Abstract

PurposeThe purpose of this paper is to investigate the impact of native Chinese R&D team directors’ differential leadership on team performance, so as to understand whether and how the directors’ differential leadership impacts team conflict, whether and how team conflict impacts new product development performance of the R&D team and whether team conflict plays full mediation on the relationship between directors’ differential leadership and new product development performance.Design/methodology/approachA literature review on differential leadership and team conflict provided the model and hypothesis. Two-wave data collected from 103 directors and 344 subordinates from 103 R&D teams of high-tech enterprises from China’s Pearl River Delta Area were used as empirical study samples. Hierarchical multiple regression analysis was conducted to test the model and hypothesis.FindingsFirst, the team director’s differential leadership would cause significant team relationship conflict and team task conflict in the R&D team. Second, team relationship conflict and team task conflict would produce significantly bad new product development performance in the R&D team. Third, team relationship conflict would significantly mediate the relationship between the team director’s differential leadership and the team’s new product development performance.Research limitations/implicationsTo yield broader conclusions and to show to that the results can be replicated in other areas or in other types of organizations, further empirical research should expand the sampling by choosing high-tech enterprises from Beijing and Shanghai that have strong innovative abilities. Moreover, to extend the differential leadership theory, few more related variables of consequences, such as team communication, team cooperation and team knowledge share, should be included in future studies.Practical implicationsIn general, the native Chinese R&D department director needs to try their best to avoid the use of differential leadership style. In addition, reasonable incentive measures, promotion mechanisms and fair team work culture are needed so as to reduce the negative impact from the director’s differential leadership.Originality/valueThe paper is original in its investigation on how Chinese indigenous organizational factor – differential leadership – influences the R&D team’s conflict and new product development performance, and provides theoretical contribution and managerial implications for the R&D team management.