Team innovation: The role of team capabilities and team decision-making

Drawing on the team-member exchange theory, in this paper, we examine how the knowledge-based three team capabilities (team knowledge management capacity, team absorptive capacity, adaptive team capacity), when shared among team members, will influence the effectiveness of team decision-making and team innovation. The study was conducted in Indian organizations. Data collected from 112 team members (with experience in innovation projects) were analyzed using structural equation modeling and bootstrapping procedure. The findings reveal that team members' capability (knowledge management capacity, adaptive capacity) plays a significant role in team innovation when there is team decision-making. However, the study found no significant relationship between absorptive capacity and team innovation. The study contributes to the literature on team innovation by offering fresh insights into how the high-quality Team-member exchange leads to better capitalization of distinct team capabilities leading to effective team decision-making, culminating in the generation of creative and novel ideas and solutions.