Functional Diversity,Absorptive Capability and Product Success: The Moderating Role of Project Complexity in New Product Development Teams

Absorptive capability appears to be an appealing concept in the technology and innovation management literature. Though absorptive capability attracts researchers from a variety of disciplines, team‐level empirical research on it is scant. In this study, we operationalized team absorptive capability as a multidimensional construct involving knowledge acquisition, assimilation and exploitation. This study also explores the moderating effect of project complexity between team absorptive capability and new product success. In studying the data from 239 new product development projects using partial least squares structural equation modelling, we found that team functional diversity is a significant determinant of team absorptive capability. Moreover, regarding the relationships between team absorptive capability and new product success, we uncovered that (i) new product success is dependent on the ability to understand the acquired knowledge, and (ii) the teams appear to be more cautious in putting the assimilated knowledge into practice to the extent that project complexity increases.