Transactive Memory Systems and Innovation: The Moderating Influence of Team Conflict

In field research of 202 teams participating in the world’s largest game jam, we advance the literature on transactive memory systems by developing theory regarding an important boundary condition: team conflict. Transactive memory systems provide teams both a structure and processes that enable team members to specialize, effectively coordinate, and trust each other’s expertise. However, when innovating, teams must not only work efficiently and effectively together, they must also generate and capitalize on new ideas. We develop novel theory as to the importance of conflict on the relationship between a team’s transactive memory system and their innovativeness. Specifically, we argue that task conflict engenders the exchange of divergent ideas that are harnessed when a team has a well-developed transactive memory system but that relationship conflict deteriorates the benefits of a well-developed transactive memory system. In support of our hypotheses, our analyses show that the positive influence of a team’s transactive memory system on its innovativeness is positively moderated by task conflict and negatively moderated by relationship conflict. These results further suggest that the benefits of a transactive memory system may be limited to when ideas are freely exchanged and when personal differences can be put aside.