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Literature is unanimous about the effects of functional diversity in new product development teams. This paper uses simulation modeling to investigate the contradictory and dynamic effects of functional team diversity on innovation revealed by empirical literature. This paper aims to start a discussion on this dynamic perspective of team diversity.

This paper presents a systemic approach toward investigating the contradictory and dynamic effects of functional team diversity on innovation by creating a simplified System Dynamics model of functional diversity in new product development teams.

Although the simulation model is highly simplified, it can integrate the contradictory results of empirical data and the dynamic component of teamwork. Therefore, it offers a new approach to investigating the effects of functional diversity on team innovation.

The model is highly simplified and exemplary. No actual data are included, thus limiting the results as fully theoretical.

Empirical studies often analyze the effects of functional diversity on innovation in new product development teams. However, empirical data are unclear regarding the nature of the effects of functional diversity on innovation. Therefore, functional diversity is chosen for the simulation model as being the most controversially discussed diversity attribute. By applying a simulation model to the problem and adding a dynamic component to teamwork, we are contributing to the explanation for the contradictory findings in literature.

The purpose of this paper is to investigate how perceptions of team performance and teamwork processes relate to functional diversity appropriateness perceptions (FDAP), that is, whether one believes that the right functions are represented in a team. Thereby, the authors distinguish between perceptions of team managers and team members.

The study involved a cross-sectional survey study among 48 sourcing teams from 12 multinational companies, all from different industries.

Members’ and managers’ congruent perceptions of performance showed differential relationships with their perceptions of the team’s functional diversity appropriateness. For managers, perceptions of team performance and functional diversity appropriateness were directly and positively related. For team members, this relationship was moderated by teamwork behavior. Moreover, unlike team members, purchasing managers did not consider functionally diverse teams to be more suitable for executing sourcing tasks.

This study identified teamwork behavior as a critical element for explaining the differences in FDAP of members and managers of sourcing teams.

Rather than homogenizing team structures, managers should stimulate good teamwork behavior that allows for an the integration of interests and insights from different functional areas.

This study adds to functional diversity literature as well as perceptual distance literature by revealing how different team effectiveness criteria shape managers’ and members’ perceptions of functional diversity appropriateness.

Cross‐functional teams (CFTs) have increased in use within a variety of organizations. While these teams claim to enhance organizational effectiveness, research has seen mixed results. This paper examines the challenges faced by CFTs and why these challenges facilitate the need for the development of a team climate for trust. Trust is discussed as a team‐level construct, an aspect of the “micro‐climate” that occurs within a team. Leadership actions particularly important to cross‐functional teams and the development of trust are offered as influential in creating a team climate for trust in cross‐functional teams.

In this chapter, we posit that identity integration, an individual difference variable measuring the degree to which multiple and disparate social identities are perceived as compatible, moderates the relationship between team diversity and innovation. Prior research shows that individuals with higher levels of identity integration exhibit higher levels of innovation on tasks that draw from identity-related knowledge systems. In this chapter, we extend this research to examine how innovation can be increased in cross-functional teams. We propose that reinforcing the compatibility between functional identities within a team facilitates access to functionally unique knowledge systems, which in turn increases team innovation.

Organizations increasingly rely on cross-functional teams to deal with supply chain (SC) disruptions. These teams may use their broad range of connections and expertise to gather or scout relevant information, enabling them to develop integrative countermeasures and increase their organization’s resilience. Despite their potential, cross-functional teams often struggle to attain information scouting’s prospective benefits for effectively resolving disruptions. By drawing from group information-processing theory, this study aims to explore when and how cross-functional teams can realize information scouting’s full potential for ensuring their organization’s resilience.

Multisource, multi-informant data were collected from 80 cross-functional teams exposed to SC disruptions in a realistic SC management simulation.

The results show that a cross-functional team’s ability to effectively use information scouting for ensuring its organization’s resilience is contingent upon the degree to which the team’s members share information and align decisions internally (i.e. internal integration). The findings further reveal that this moderating role of internal integration is strengthened when the cross-functional team faces a volatile environment in which multiple SC disruptions are likely to occur (i.e. higher SC vulnerability).

This study contributes by advancing a more complete perspective on how a cross-functional team may contribute to its organization’s resilience. Specifically, the present research reveals how the benefits of a cross-functional team’s information scouting for dealing with SC disruptions are critically dependent upon internal conditions within the team, as well as external conditions related to its organization’s overall SC (i.e. beyond individual dyadic relationships).

This article aims to examine the influence of emotional intelligence on cross-functional teams, the formation of interorganizational networks and the impact of all three dimensions on operational effectiveness.

The analysis was based on 250 valid questionnaires collected from organizations in the Valle del Cauca region in Colombia in the service sector. The variables were analyzed using structural equation modeling to identify their relationships.

The results suggest that emotional intelligence contributes to establishing cross-functional teams but does not impact the development of interorganizational networks, influencing operational effectiveness only indirectly through the cross-functional teams. Contrary to what the literature suggests, interorganizational networks do not influence the operational effectiveness of organizations. Hence, in the pursuit of competitive advantage, companies in the studied region should encourage the creation of cross-functional teams within their organizations to maximize the returns received through the optimization of operational effectiveness.

Organizations are comprised of individuals whose emotional intelligence competencies and abilities enable them to form effective cross-functional teams. Furthermore, cross-functional teams that effectively establish relationships with other organizations are frequently employed in global, interorganizational collaboration environments like joint ventures and alliances. Cross-functional teams that fulfill their aims have the potential to benefit the organization's performance by boosting operational effectiveness and, therefore, its competitiveness.

The value of this article lies in providing a better understanding of the capabilities and strategies of organizations in the construction of interorganizational networks intended to improve their competitiveness. However, before operational effectiveness and a sustainable competitive advantage can be achieved, the role of the individuals comprising the cross-functional teams should be managed through the appropriate application of the concepts of emotional intelligence.

The purpose of this paper is to explicate the influence of diverse team on team-level ambidexterity and its curvilinear assessment, and test the mediating role of team reflexivity and the moderating role of shared meta-knowledge in the curvilinear relationship between team diversity and team ambidexterity.

The authors collected multisource and temporally separated data on 206 R&D teams within 28 high-tech firms in Taiwan.

This study found a complex, curvilinear, moderated mediation relationship that functional background diversity has with team ambidexterity. Furthermore, consistent with the notion from categorization-elaboration model, the authors found the curvilinear relationship that functional background diversity has with both team ambidexterity and team reflexivity. Finally, the authors also found that the curvilinear relationship between functional background diversity and team reflexivity was moderated by shared meta-knowledge, such that the positive relationship was strengthened and the negative relationship weakened, in higher shared meta-knowledge in teams rather than lower.

The results demonstrate that team diversity-team ambidexterity relationship is much more complicated than previous works have assumed or suggested. Overall, the authors contribute to a novel understanding about the importance of team diversity in ambidextrous teams by opening the black box of how and when functional background diversity and team ambidexterity.

There has been an increasing trend toward the creation of senior management teams (SMTs) which are characterized by a high degree of functional heterogeneity. Although such teams may create better linkages to information, along with the benefits of functional heterogeneity comes the potential for conflicts that stem from the value differences among subcultures in an organization. These conflicts can adversely affect performance. The purpose of this paper is to examine how school leaders’ activities mediate the relationship of SMT functional heterogeneity to SMT effectiveness (in-role performance and innovation).

Data, which were obtained through a survey, was collected from a sample of 92 schools in Israel. Data were collected from two sources (principals and SMT members) to minimize problems associated with same source and common method bias. Data were aggregated at the team level of analysis.

The results of structural equation model indicated that principal’s internal activities enhanced SMT in-role performance whereas principals’ external activities enhanced SMT innovation. The results also showed that principal’s internal activities are full mediators of the relationship between functional heterogeneity and SMT in-role performance.

This study has implications for policies involving the design and implementation of leadership tools to effectively manage SMTs. The results of this study can help principals to establish priorities and allocate their time and resources more effectively, both inward and outward the SMT boundary so as to assist functionally heterogeneous SMTs translating the benefits of functional heterogeneity into significant achievements.

This article is the first in a two‐part discussion of the determinants and performance consequences of concurrent engineering (CE) team usage in organizations. The purpose of this first article is to develop a model of the organizational factors that influence the extent that CE teams are used when developing new products.

To test the model, 2,500 questionnaires were mailed to new product development (NPD) managers from the machinery, computer product, electrical equipment, and transportation equipment manufacturing industries, of which 189 usable questionnaires were returned, for a usable response rate of 7.5 percent. The data were analyzed using structural equation modeling with partial least squares.

Results indicate that an innovative organizational climate and complex NPD activities both influence the extent that organizations support functional integration on NPD teams, and this support, in turn, influences the extent that organizations use CE teams. Analyzing the qualitative data using content analysis indicates additional factors influencing CE team usage.

To researchers, this study examines in detail the extent of CE team usage, thus addressing a major gap in the research literature. This study also addresses the concerns of researchers by examining organizational contextual factors.

To NPD managers, this study highlights organizational precursor conditions needed in order for CE teams to be supported in the organizations, specifically complex NPD activities and an innovative organizational climate. By examining these two variables, NPD managers can gauge the likelihood that CE teams will be supported even before they are actually implemented.

The purpose of this paper is to explore the role of cross‐functional teams in the alignment between system effectiveness and operational effectiveness after the implementation of enterprise information systems (EIS). In addition, it aims to explore the contribution of cross‐functional teams to improvement in operational performance.

The research uses a combination of qualitative and quantitative methods, in a two‐stage methodological approach, to investigate the influence of cross‐functional teams on the alignment between system effectiveness and operational effectiveness and the impact of the stated alignment on the improvement in operational performance.

Initial findings suggest that factors stemming from system effectiveness and the performance objectives stemming from operational effectiveness are important and significantly well correlated factors that promote the alignment between the effectiveness of technological implementation and the effectiveness of operations. In addition, confirmatory factor analysis has been used to find the structural relationships and provide explanations for the stated alignment and the contribution of cross‐functional teams to the improvement in operational performance.

The principal limitation of this study is its small sample size.

Cross‐functional teams have been used by many organisations as a way of involving expertise from different functional areas in the implementation of innovative technologies. An appropriate use of the dimensions that emerged from this research, in the context of cross‐functional teams, will assist organisations to properly utilise cross‐functional teams with the aim of improving operational performance.

The paper presents a new approach to measure the effectiveness of EIS implementation by adding new dimensions to measure it.