Cross‐functional team effectiveness : An examination of internal team environment, shared leadership, and cohesion influences

Purpose – Current research remains unclear on what factors contribute to cross‐functional team (CFT) success. Thus, the primary purpose of this investigation is to examine internal factors of the team (namely internal team environment, shared leadership, and cohesion) and the influence of each factor on CFT effectiveness. Design/methodology/approach – Structural equation modeling is used to empirically examine the data collected from an undergraduate student sample. Teams worked competitively on a complex task requiring functional area expertise. Findings – Results from the study indicate internal team environment influences effectiveness through shared leadership and cohesion as found in other forms of teams. However, unique to CFTs, internal team environment is not directly related to effectiveness, and shared leadership does not directly influence cohesion. The findings suggest that in CFTs, internal team environment indirectly influences effectiveness. Research limitations/implications – The findings of this study can be used to expand current models of CFT effectiveness. Additionally, by examining the internal dynamics of the team (e.g. internal team environment) researchers will be better able to account for the previous vast differences found in CFT outcomes. Practical implications – Managers interested in influencing team effectiveness are encouraged to focus on the internal dynamics of CFTs. To indirectly influence team effectiveness managers should insure teams establish a clear purpose and that members support one another and feel comfortable making contributions to the team. Originality/value – This investigation offers understanding of how CFTs can be structured to influence effectiveness and provides insight into previously inconsistent findings. Both researchers and managers will benefit from an enhanced understanding of how internal factors uniquely influence CFT effectiveness.