Abstract
The study examines the link between informational diversity and innovative performance, with a specific emphasis on the importance of a team's dynamic capabilities in turbulent environments. Utilizing 131 research and development teams, with 289 members from 87 manufacturing firms, our findings reveal that environmental turbulence not only influences the development of dynamic capabilities necessary to leverage diverse information among team members but also amplifies the positive relationship of these capabilities with innovative performance. The results demonstrate the significant roles of both environmental turbulence and dynamic capabilities in the diversity–performance relationship, providing fresh insights into this area of literature. For example, merely possessing diverse informational resources is not correlated with performance improvements. Instead, teams appear to require a catalyst to cultivate dynamic capabilities that effectively transform these resources into innovation.
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