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This research examines the role of team-based superordinate identity in influencing new product performance. The author also studies how several team-related factors affect superordinate identity and, through this psychological bond, influence new product performance. The findings, based on a sample of 118 teams, reveal that superordinate identity indeed enhances the performance of the new product developed by a team. Traditional group factors such as task interdependence and physical proximity do not play any role in influencing either superordinate identity or new product performance. Team longevity improves superordinate identity but has no effect on new product performance. Instead, a special team structure (i.e., high autonomy and outcome interdependence) improves both superordinate identity and new product performance. If interdepartmental connectedness in the firm is high, there is a reduced need for high autonomy in the team. Finally, the characteristics of the special team structure influence new product performance only through superordinate identity.
In recent years, firms have increasingly been advised that an effective way of developing successful new products is to use cross-functional product development teams (Takeuchi and Nonaka 1986; Wheelwright and Clark 1992). Although the virtues of cross-functional product development teams have been widely extolled, few would argue that the mere formation of such teams is sufficient to improve new product performance. However, despite the growing popularity of cross-functional teams for new product development, we still do not fully understand how these teams influence the performance of new products. The findings from traditional group research may not be very helpful in enhancing the effectiveness of cross-functional teams because these studies are mainly applicable to groups that have members from common backgrounds. The multifunctional nature of these product development teams and the way they are usually structured in organizations creates unique barriers to their effectiveness.
Regarding the multifunctional nature of product development teams, a major source of concern is the presence of deep-rooted biases and stereotypes that individuals from one functional area hold against people from other areas (Griffin and Hauser 1996; Gupta and Wilemon 1988). To a large extent, these biases and stereotypes have their roots in strong functional identities that are firmly held by individuals in the organization (Ashforth and Mael 1989; Gregory 1983; Hutt 1995). These functional identities and the resulting interfunctional biases...