When less is more: the proportion of creative members and R&D team innovative performance

Abstract

Researchers have long assumed that a high proportion of creative members in a team is associated with high team innovative performance. This study proposed that the relationship between the proportion of creative members in a research and development (R&D) team and the team’s innovative performance is an inverted U-shape. Using a sample of 120 R&D teams with time-lagged and multiple-source data, we found support for this argument. Furthermore, we theorized that the human resource management practices of participative management and pay dispersion moderate that U-shaped curvilinear relationship. Our data show that the curvilinear relationship holds when high participative management was implemented and when pay dispersion is high. We derive implications for management theory and practice.