Cross-functional teams' collaboration, management accounting systems and product innovation performance: evidence from Hi-tech firms
Ali Abbas, Kamran Ali, Muhammad Siddique, Rimsha ZahidPurpose
The study aims to examine the nexus between product innovation performance (PIP), cross-functional teams' collaboration (CFC), and management accounting systems (MAS) based on knowledge-based theory (KBT), social capital theory (SCT) and contingency theory (CT). Furthermore, the study also aims to explore the mediating role of MAS in the CFC-PIP nexus, which remains untested.
Design/methodology/approach
This study tested the main hypotheses through a two-stage design: first, a meta-analysis of 25 studies to synthesize prior evidence for hypothesis development, and second, an empirical investigation to test the hypotheses, based on data from 328 managers from Pakistan's Hi-tech firms using SmartPLS 3.
Findings
Our findings show that CFC has a significant, positive impact on PIP, indicating that cross-functional teams enhance product innovation in Pakistani Hi-tech firms. Second, we find that CFC is positively associated with the MAS. Third, MAS positively impacts the PIP. Finally, MAS mediates the relationship between CFC and PIP.
Originality/value
This is the first study to integrate KBT, SCT and CT to test MAS as a mediator between CFC and PIP. On the other hand, this study's empirical finding is that generating new ideas through collaboration among departmental workforces indicates that MAS mediates the nexus between CFC and PIP. Our study offers valuable insights for companies aspiring to innovate and succeed in today's business landscape, providing context-specific guidance for Hi-tech firms in developing economies.