Willingness to Take Risk and Psychological Ownership as Moderators of the Team Climate for Innovation to Innovative Work Behavior Relationship
Willingness to Take Risk and Psychological Ownership as Moderators of the Team Climate for Innovation to Innovative Work Behavior Relationship
James Anthony Ward | 2016
Abstract
The purpose of this team innovation research was to investigate two understudied variables (willingness to take risk and psychological ownership) as moderators of the team climate for innovation (TCI) to innovative work behavior (IWB) relationship. This study built on the team innovation research started by West (1990). The research tested the significance of two innovation literature threads. First, it has become normative in the innovation literature that employees with psychological ownership, or a stake, in the business take better care of, have more pride in, and have more motivation to innovate (Avey, Avolio, Crossley, & Luthans, 2009). Second, innovation is an inherently risk-based process, enhanced by individual willingness to take risk that challenges the group (Kheng, Mahmood, & Beris, 2013; Saleh & Wang, 1993). Seven self-report instruments were used to collect data (N = 142) from engineering design build and financial companies in the southeastern United States. Nine hierarchical multiple regression analyses indicated the willingness to take risk moderated the task orientation to IWB relationship, and stake moderated the task orientation and support to IWB relationships. The results bear support for the willingness to take risk and stake as important variables in the TCI model. This research added to the understanding of TCI as a descriptive and prescriptive tool. The team innovation theoretical model is complex with risk and stake being but two parts of the puzzle. The theoretical implications built on Bain, Mann, and Pirola-Merlo’s (2001) work that TCI could be expanded to include a context-sensitive basket of IWB indicators. Leaders who modelled these behaviors and had development programs to create a sense of ownership had higher team IWB (Seshadri & Tripathy, 2006) and willingness to stand up and confront the group with new ideas. Innovation is one of a limited number of tools that are sources of competitive advantage—a key to long-term organizational survival (Christensen, 1997). Toward this end, the practical implications included measuring, training, and modelling as a leader’s practical tools to enhance the willingness to take risk and stake to strengthen the TCI–IWB relationship. Recommendations for future research are provided.