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Financial constraints in innovation projects: When is less more? |
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| Authors: | Martin Hoegl Michael Gibbert David Mazursky |
| Institution: | a WHU-Otto Beisheim School of Management, Chair of Leadership and Human Resource Management, Burgplatz 2, 56179 Vallendar, Germany b Bocconi University, Institute for Business Management, Viale Filippetti 9, 20122 Milan, Italy c Jerusalem School of Business Administration, Hebrew University, Mt. Scopus, Jerusalem 91905, Israel |
| Abstract: | This article aims to reconcile the seemingly contradicting arguments put forth in different literatures regarding the role of financial resource constraints as inhibitors or enablers of innovation in organizations. Recognizing that innovative endeavors are regularly carried out through team projects, we examine when, i.e., under what conditions, financial resource constraints enable, rather than inhibit, the performance of innovation teams. Specifically, we propose that the relationship between financial constraints and innovation project performance is moderated by a bounded creativity approach, a team process that leverages the team's domain-relevant skills, an engaging project objective, strong team cohesion, and team potency. |
| Keywords: | Resource constraints Innovation Team |
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