Boosting the confidence of new product development teams: The role of team boundary spanning, team size and functional diversity

In today's highly interconnected, uncertain and dynamic business environment, team boundary spanning has become an important determinant of the performance of new product development (NPD) projects. Despite the positive evidence supporting the use of boundary spanning activities by NPD teams, little is still known about how boundary spanning teams become high‐performance teams. The current study advances research on this subject by examining the mediating effect of team potency on the relationship between team boundary spanning and new product performance, as well as the moderating effects of team size and functional diversity on the relationship between team boundary spanning and team potency. Data from a time‐lagged survey study of 140 NPD projects found that team boundary spanning can promote team potency that, in turn, results in greater new product quality and new product creativity. The positive effect of team boundary spanning on team potency was found to be more pronounced for NPD teams of medium size and high levels of functional diversity.