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Centralization or decentralization? Power allocation in team innovation management

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  • Shiwen Luo
  • David Yoon Kin Tong

Abstract

Power disparity, as an important form of internal team hierarchy, presents a "double-edged sword effect". To reconcile the inconsistent effects and systematically explore the different mechanisms of power disparity, this study constructs a comprehensive theoretical model based on power functionalism and power conflict theory, with team coordination and team conflict as dual mediators, and power legitimacy as moderator. By collecting valid questionnaires from 76 teams across 27 different types of companies in various regions, statistical analysis and hypothesis testing were conducted on the data. The results conclude that power disparity positively influences team innovation performance through the team coordination path and negatively affects it through the team conflict path. However, under the moderating effect of power legitimacy, the negative effect of the team conflict path is suppressed, and the positive effect of the team coordination path is strengthened, thus ensuring that power disparity has a positive effect on team innovation performance. This study provides a useful reference for designing the power hierarchy within enterprises, and offers profound insights into effective organizational structure and decision-making processes.

Suggested Citation

  • Shiwen Luo & David Yoon Kin Tong, 2024. "Centralization or decentralization? Power allocation in team innovation management," PLOS ONE, Public Library of Science, vol. 19(10), pages 1-17, October.
    • Handle: RePEc:plo:pone00:0310719
    DOI: 10.1371/journal.pone.0310719
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    References listed on IDEAS

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    1. Christophe Boone & Walter Hendriks, 2009. "Top Management Team Diversity and Firm Performance: Moderators of Functional-Background and Locus-of-Control Diversity," Management Science, INFORMS, vol. 55(2), pages 165-180, February.
    2. van der Heijden, Eline & Potters, Jan & Sefton, Martin, 2009. "Hierarchy and opportunism in teams," Journal of Economic Behavior & Organization, Elsevier, vol. 69(1), pages 39-50, January.
    3. Nicholas A. Hays & Huisi (Jessica) Li & Xue Yang & Jo K. Oh & Andrew Yu & Ya-Ru Chen & John R. Hollenbeck & Bradley B. Jamieson, 2022. "A Tale of Two Hierarchies: Interactive Effects of Power Differentiation and Status Differentiation on Team Performance," Organization Science, INFORMS, vol. 33(6), pages 2085-2105, November.
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