This study examines how leadership characteristics in new product development teams affect the learning, knowledge application, and subsequently the performance of these teams. Using data from a study of 229 members from 52 high-tech new product projects, we empirically demonstrate that team learning has a strong positive effect on the innovativeness and speed to market of the new products. Moreover, a democratic leadership style, initiation of goal structure by the team leader, and his or her position within the organization were positively related to team learning. Managerial implications of these results are discussed.

This study examines the effect of reward structures on the performance of cross-functional product development teams. Results suggest that when it is easy to evaluate individual performances, position-based differential rewards lead to greater satisfaction. For long and complex projects, process-based rewards have a negative effect and outcome-based rewards have a positive effect on performance. For risky projects and highly competitive or relatively stable industries, a nonlinear and monotonically decreasing relationship exists between outcome-based rewards and product quality.

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Drawing on the path-goal theory of leadership, the present study examines the effect of team leader characteristics on an array of conflict resolution behavior, collaboration, and communication patterns of cross-functional new product development (NPD) teams. A hierarchical linear model analysis based on a survey of 246 members from 64 NPD teams suggests that participative management style and initiation of goal structure by the team leader exert the strongest influence on internal team dynamics. Both these leadership characteristics had a positive effect on functional conflict resolution, collaboration, and communication quality within the NPD team while discouraging dysfunctional conflict resolution and formal communications. Comparatively, team leader's consideration, initiation of process structure, and position had a surprisingly weak effect on internal team dynamics. Further, the findings underscore the differential effects on various dimensions of team dynamics, the importance of controlling for project and team characteristics, and the use of multilevel modeling for studying nested phenomena related to NPD teams. Implications of these findings are discussed.

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