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The Effects of Project Management Mechanisms on Innovation Performance in Hi-Tech Firms: Mediation of Teamwork Processes and Moderating Effects of Different Team Members’ Cultural Values
(2011)
- High tech firms increasingly form innovation projects composed of team members with different cultural backgrounds to respond to their customers’ needs. Prior studies have regarded these cross cultural innovation projects as an important instrument for developing innovative products, yet little effort has been investigated on the issue of the effect of project management mechanisms (autonomy and control) on these projects and the impacts of team members’ cultural backgrounds on different project management mechanisms. Moreover, prior studies have neglected to bridge the gap between the effect of these project management mechanisms on communication and coordination of teamwork processes. Therefore, this study aims to fulfill the gaps in project management and cross cultural study by exploring the effects of different project management mechanisms on several types of innovation performance. In particular, it examines the relationships of these project management mechanisms on innovation performance mediated by the teamwork processes and moderated by the different backgrounds of team members represented by their cultural values. Structural equation modelling was used to test all hypotheses from 434 new product development project team members. The results indicated that control mechanisms had stronger effects on innovation performance than providing autonomy. Additionally, the study showed that all project management mechanisms (autonomy and control mechanisms) had indirect effects on radical innovation and project efficiency through communication and coordination. However, these control mechanisms had indirect impacts on incremental innovation only through coordination but not communication. Importantly, this study revealed that control mechanisms could apply to the team members with different cultural backgrounds in encouraging higher innovation performance. In order to enhance higher innovation performance, the suggestions to apply the appropriate project management mechanisms to their team members with different cultural backgrounds are provided.
