Too much of a good thing The quadratic effect of shared leadership on creativity and absorptive capacity in R&D teams

• Published in: European journal of innovation management Vol. 24; no. 2; pp. 395 - 413
• Main Authors: Cavazotte, Fláviade Souza Costa Neves, Paula, Fábio de Oliveira
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 18.05.2021
• Subjects: Absorptive capacity; Absorptivity; Alliances; Creativity; Exploitation; Human capital; Influence; Innovations; Knowledge; Leadership; Multivariate statistical analysis; Portfolio management; R&D; Research & development; Teams; Technological change
• ISSN: 1460-1060; 1758-7115
• DOI: 10.1108/EJIM-11-2019-0327

Purpose This study investigates the influence of shared leadership on creativity and absorptive capacity in R&D teams. Based on theories of intragroup processes, it proposes that shared leadership positively affects such team outcomes up to a certain point, but at very high levels could cause loss of synergy and effectiveness, and therefore the relationship will follow an inverted U-shaped curve. Design/methodology/approach The study was conducted with 76 independent teams from the R&D unit of one of the largest energy companies in Brazil. Data were collected with two questionnaires answered by external team managers and team members. The study applied structural equation modeling to test the hypotheses. Findings Results indicate that there is a curvilinear relationship between shared leadership and external assessments of creativity and absorptive capacity in R&D teams. Although leadership shared among team members tends to favor creativity and realized absorptive capacity, at very high levels it yielded less than optimal outcomes. Team creativity had a direct positive effect on the teams' ability to explore and transform knowledge. Originality/value The study is the first empirical test of the influence of shared leadership on team creativity and absorptive capacity that proposes and confirms a quadratic effect. These results shed new light on the authors’ understanding of how intrateam leadership affects creative processes and absorptive capacity in the R&D context. These findings offer novel insights to inform practice as firms manage innovation performance.