Learning to Adapt and improve Performance: Role of Team member Positive Mood and Satisfaction

Abstract

In this paper, we explore how organizations in service-based industries can learn and adapt to market disruptions. We propose that the relationship between team exploratory learning and team performance depends on the mediating role of adaptive capability and the moderating role of team members' positive mood satisfaction. As a part of the study, we conducted a cross-sectional survey at the team level in an Information Technology services organization. We collected data from both project managers and team members working in project teams within the organization and used PROCESS macro developed by Hayes for testing mediation and moderated-mediation models. Our findings establish that a team's adaptive capability mediates the relationship between team exploratory learning and team performance, and the relationship between team exploratory learning and team adaptive capability is moderated by team member positive mood. Finally, team member satisfaction moderates the relationship between team adaptive capability and team performance. Our study adds to the theory by establishing that team adaptive capability in service organizations intervenes in the effect of team exploratory learning on team performance. In addition, we establish a crucial role of team members' positive moods and satisfaction levels in this relationship.