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New product development (NPD) projects are strategically important for firms’ operations but suffer from high failure rates. Leadership is a key factor for project success. However, in contrast to positive project leadership, project managers’ knowledge hiding has received little attention. Drawing on the input-mediator-output (IMO) framework and model of work team resilience, we explored the effect of project managers’ destructive knowledge hiding (i.e. evasive hiding and playing dumb) on project team performance (i.e. efficiency and effectiveness) and the serial indirect effect through team psychological safety and transactive memory systems.

We conducted a time-lagged multiple-sourcing investigation of Chinese high-tech firms and tested the hypotheses using data collected from 105 NPD project teams.

Our findings demonstrated that project managers’ knowledge hiding negatively affects NPD project team performance and indirectly negatively affects transactive memory systems through team psychological safety. Moreover, project managers’ knowledge hiding exerts a negative indirect effect on team performance through team psychological safety and transactive memory systems in serial.

This study contributes to the literature on operations management (OM) by broadening our understanding of the connection between project managers' destructive knowledge hiding and the failure of NPD projects. In providing such insight, it also offers practical guidance for overcoming team-level obstacles arising from project managers' knowledge hiding.