Sustainable Team Design: A Challenge to Traditional Beliefs in Information-Intensive Service Industries

Abstract

Sustainable management activities focus on creating value for organizations. This is particularly relevant in service organizations as they are under increasing pressure to capture and process information efficiently. We advocate that the amount of information and the way teams process this information have a substantial impact on an organization’s ability to sustain a competitive advantage. This study addresses a gap in the literature by examining the impact of the level of information intensity on performance in the service industry. It also contributes to the debate about whether team structure facilitates performance in a service-based organization. A longitudinal design was employed to determine whether information-intensive processes influence performance, and if so, whether the impact differs between team designs. To do this, data were collected from 24,925 motor insurance claims over two distinct time periods. While our findings confirm that information intensity has a direct impact on the performance of claims processing, they also challenge traditional beliefs about self-managed work teams’ dominance. By adopting a more nuanced and context-specific perspective, we discovered that in certain situations the production line approach to team design was more productive than self-directed work teams in respect to critical operational tasks. This research sheds light on a relatively unexplored aspect of the service industry, has implications for sustainable management practices relating to team design, and provides a rich vein for future research studies.