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Two goods in tension: Balancing autonomy and trust for innovative climate in teams

Author

Listed:
  • Durand, Rodolphe

    (HEC Paris)

  • Asghar, Nauman

    (University of Liverpool Management School)

Abstract

We examine the effect of interaction of high levels of team autonomy and intra-team trust on team innovative climate. Isolation of teams with high levels of autonomy may be amplified in teams which have a higher level of intra-team trust leading to complacency and a reduced climate for innovativeness. We expect that such negative effects can be overcome when leadership points to a superordinate purpose which embeds the unit’s actions into a superior objective shared by the whole organization. Using large-scale panel data (85,317 observations belonging to 76,387 teams from 1,501 firms) and three distinct samples, we find significant support for our predictions and the role of purpose-based leadership experience as a mechanism to balance trade-offs of team design features.

Suggested Citation

  • Durand, Rodolphe & Asghar, Nauman, 2026. "Two goods in tension: Balancing autonomy and trust for innovative climate in teams," HEC Research Papers Series 1623, HEC Paris.
    • Handle: RePEc:ebg:heccah:1623
    DOI: 10.2139/ssrn.6240114
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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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