Abstract:

In today’s competitive marketplace, organizations considerably rely on radical innovation in a team to gain and maintain competitive advantages. Although scholars have studied the mechanism by which such innovation forms from different perspectives, few studies have focused on the potential impact of innovation expectation discrepancy and the self-regulation processes of team leaders. Drawing on self-regulation theory, the current research investigated creative process engagement among leaders as a vital mechanism through which innovation expectation discrepancy affects team radical innovation. We also examined the co-moderating effect of the perceived overqualification of leaders and criteria for organizational promotion on the relationship between innovation expectation discrepancy and team radical innovation. The research model is summarized in Figure 1.

To test our hypothesized model, we carried out an experiment (Study 1) and a field survey (Study 2). In Study 1, participants were randomly allocated to one of 68 teams, which were randomly assigned to one of three conditions (performance above expectations, below expectations, no discrepancy). Innovation expectation discrepancy was manipulated via expert evaluations of the outcomes of a creative task executed by different teams. Table 1 displays means and standard deviations by condition. The results indicated that innovation expectation discrepancy has a U-shaped impact on a team leader’s creative process engagement (H1: β = 1.06, p < 0.001). Such engagement mediates the U-shaped relationship between innovation expectation discrepancy and team radical innovation (H2: performance below expectations, instantaneous indirect effect = -1.22, 95% CI = [-3.50, -0.15]; no discrepancy, instantaneous indirect effect = -0.18, 95% CI = [-1.45, 0.41]; performance above expectations, instantaneous indirect effect = 0.87, 95% CI = [2.01]).

In Study 2, our sample comprised 76 R&D teams from various organizations. Means, standard deviations, and correlations for the main variables appear in Table 2. The results replicated the U-shaped relationship between innovation expectation discrepancy and creative process engagement (H1: β = 0.30, p < 0.001) and the indirect U-shaped relationship between innovation expectation discrepancy and team radical innovation via creative process engagement (H2: Table3). In addition, perceived overqualification and organizational promotion criteria jointly moderate the U-shaped effect of innovation expectation discrepancy on team radical innovation via creative process engagement (H3: Table3). Compared with the situation of high perceived overqualification and absolute promotion criteria and the situation of low perceived overqualification and relative promotion criteria, the indirect effect of innovation expectation discrepancy on team radical innovation through creative process engagement is stronger when perceived overqualification is high and the organization implements relative promotion criteria. Beyond our expectations, there is no significant difference in the impact of innovation expectation discrepancy on team radical innovation in the case of high perceived overqualification and relative promotion criteria and in the case of low perceived overqualification and absolute promotion criteria.

Our study contributes to the literature in several distinct ways. First, it derived novel insights into the cultivation of radical innovation in a team by focusing on the effects of innovation expectation discrepancy from the perspective of a team leader. Second, this study enriched extant knowledge about how team leaders promote radical innovation through self-regulation. Specifically, it identified the creative process engagement of a leader as an important mechanism by which innovation expectation discrepancy affects team radical innovation. Third, this research found that when organizations implement relative promotion criteria and a team leader’s perceived overqualification is high, the impact of innovation expectation discrepancy on team radical innovation via creative process engagement can be strengthened, which helps companies determine how to achieve radical innovation in teams.

Key words: innovation expectation discrepancy, team radical innovation, creative process engagement, perceived overqualification, organizational promotion criteria