The effects of environmental dynamism and team strain on product innovation: The moderating role of perceived diversity climate

Abstract

Rapid changes in the technological environment have significantly increased the strain experienced by NPD teams, particularly with regards to developing innovative products that meet both technology and market demands. This study argues that environmental dynamism positively influences the level of team strain but negatively influences product innovation. Moreover, this study further argues that the effect of team strain on product innovation will be positively moderated by perceived diversity in a team climate as it is defined in this study. To test the proposed hypotheses, 87 NPD team leaders and 336 members participated in the study. The results indicate that technology dynamism positively influences team strain and negatively influences product innovation, while market dynamism positively influences both variables. Further, the negative influence of team strain on product innovation is positively moderated by a team's perception with regard to the diversity climate.

The Paradox of Group Citizenship and Constructive Deviance: A Resolution of Environmental Dynamism and Moral Justification

“…Environmental dynamism refers to the frequency of change and the degree of instability of the environment faced by organizations or groups [ 24 ]. It should be especially noted that environmental dynamism is widely explored at the team/group level as well as at the organizational level [ 25 , 26 ], especially in the era of team as the main unit of innovation. According to the perspective of social information processing, employees may have diverse views on constructive deviance under different degrees of environmental dynamism.…”