When Teams Connect: How Structure and Relationships Boost Innovation

What is it about?

This study investigates how cross-functional collaboration—the cooperation among departments—drives product innovativeness, depending on the internal context. It distinguishes two key forces: formal structural factors (decision autonomy and shared responsibility) that managers can shape, and relational factors (social interaction, trust, and goal congruence) that influence collaboration quality. The model explores how these forces interact to determine whether teamwork across functions produces creative success. Drawing on data from Canadian firms, the study shows that the link between cross-functional collaboration and product innovation strengthens under strong structural and relational support. When employees have decision autonomy and shared accountability, they engage more in creative problem-solving. Likewise, workplaces that encourage interaction, trust, and shared purpose see smoother collaboration and greater innovation. A configurational analysis shows that relational cohesion often matters more than formal systems for turning teamwork into creativity. For practitioners, the results point to the need for a balanced organizational climate that unites structural clarity with relational depth. Empowering employees to take initiative, emphasizing collective responsibility, promoting open communication, cultivating trust, and aligning team objectives all strengthen the bridge between collaboration and innovation. Leaders who invest simultaneously in autonomy, accountability, connection, confidence, and common purpose will find their teams better equipped to generate creative solutions and maintain a competitive edge.

Featured Image

Photo by Austin Distel on Unsplash

Photo by Austin Distel on Unsplash

Why is it important?

This study is unique in identifying how five complementary conditions—freedom to decide, shared ownership, interactive communication, mutual trust, and goal alignment—collectively determine whether collaboration truly leads to innovation. Each of these elements contributes to a robust internal system that enables employees to work across functional boundaries without friction or ambiguity. By demonstrating how these interconnected factors reinforce one another, the study deepens our understanding of the mechanisms that convert teamwork into creative performance. Its timeliness lies in offering actionable guidance for Canadian organizations and others managing complex, cross-departmental environments. As innovation increasingly depends on cohesive, self-directed teams, this research underscores that combining empowerment, accountability, connectedness, trust, and shared vision provides the essential foundation for sustainable innovation in today’s dynamic organizational landscapes.