The Effect of Interactional Fairness on the Performance of Cross‐Functional Product Development Teams: A Multilevel Mediated Model*

Abstract

Cross‐functional product development teams (CFPDTs) are receiving increasing attention as a fundamental mechanism for achieving greater interfunctional integration in the product development process. However, little is known about how team members' interactional fairness perception—fairness perception based on the quality of interpersonal treatment received from the project manager during the new product development process—affects cross‐functional communication and the performance of CFPDTs. This study examines the effects of interactional fairness on both team members' performance and team performance as a whole. It was predicted that interactional fairness in CFPDTs would significantly affect team members' task performance, both task‐ and person‐focused interpersonal citizenship behaviors, as well as team performance. Additionally, commitment would partially mediate the effects of interactional fairness on these performance outcomes. Analyzing survey responses from two student samples of CFPDTs with hierarchical linear modeling techniques, it was demonstrated that team members' task performance, interpersonal citizenship behavior, and team performance are enhanced when team members are dedicated to both the team and the project, and such dedication is fostered when project managers are fair to team members in an interpersonal way.