Abstract
From the perspective of entrepreneurial team processes, this study examines the effect of a dynamic team environment on entrepreneurial team innovation. Through applying uncertainty reduction theory, it proposes the influence mechanism and boundary condition of the relationship between dynamic team environment and entrepreneurial team innovation. By analyzing a sample of 270 entrepreneurial teams in China, it is found that a dynamic team environment can evoke entrepreneurial team innovation via triggering team members’ agreement-seeking behavior and then promoting team knowledge integration. In addition, team centralization of decision making can weaken the relationship between agreement-seeking behavior and team knowledge integration. Our findings contribute to a better understanding of entrepreneurial teams’ reactions to dynamic environments and the multistep mechanism that transfers the impact of a dynamic team environment to entrepreneurial team innovation through team members’ reactions and team interactions.
Highlights
In the dynamic environment after the 2003 SARS outbreak, two entrepreneurial teams, Alibaba and JD.com, experienced huge challenges
The results showed a good fit to the data, with comparative fit index (CFI) = 0.974 and root-mean-square error of approximation (RMSEA) = 0.022
The degree of dynamism in the team environment is significantly correlated with the extent of agreement-seeking behavior (β = 0.438, p < 0.01), team knowledge integration (β = 0.257, p < 0.01), and the level of team innovation (β = 0.356, p < 0.01)
Summary
In the dynamic environment after the 2003 SARS outbreak, two entrepreneurial teams, Alibaba and JD.com, experienced huge challenges To survive, they engaged in a series of innovations. Under a highly dynamic team environment, to reduce the potential hazard of uncertainty brought about by environmental dynamics, we propose that team members may react with sufficient communications to create more consensus between people, which has been conceptualized as agreement-seeking behavior by Knight et al (1999). To unveil the multistep mechanism between a dynamic entrepreneurial team environment and team innovation, we propose that a dynamic team environment will enhance team members’ agreement-seeking behavior (team members’ reaction), which will improve team knowledge integration (team members’ interaction), and, improve team innovation (team outcomes).
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