Team Performance Management: An International Journal
Innovation and cross-functional teams: Analysis of innovative initiatives in a
Brazilian public organization
Daniel Marasquini Stipp, Márcio Lopes Pimenta, Daniel Jugend,
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https://doi.org/10.1108/TPM-12-2016-0056
https://doi.org/10.1108/TPM-12-2016-0056
https://doi.org/10.1108/TPM-12-2016-0056
Innovation and
cross-functional teams
Analysis of innovative initiatives in a
Brazilian public organization
Daniel Marasquini Stipp and Márcio Lopes Pimenta
Federal University of Uberlândia, Uberlandia, Brazil, and
Daniel Jugend
Department of Production Engineering,
Universidade Estadual Paulista Julio de Mesquita Filho, Bauru, Brazil
Abstract
Purpose – The aim of this paper is to characterize how innovation may happen through cross-functional
teams (CFT) in an organization of the public sector.
Design/methodology/approach – A case study helped to characterize several behavior patterns, team
structures and respective links with generating innovation in internal processes and public answering
contexts.
Findings – The results highlight that formal-temporary teams present a higher capacity to generate
incremental innovation in products, whereas permanent-informal teams have a higher capacity to generate
innovation in the internal processes and public answering contexts.
Research limitations/implications – The limitations of this research relate to the fact that this is a
single case study, and although it is an important case to examine innovation and CFTs, by its very
nature, it is not possible to extend and generalize the obtained data to other organizations. The
evaluation of its propositions was merely qualitative, and future research is needed to validate its
characteristics.
Practical implications – Several settings of CFTs are presented, as well as their ability to generate
different types of innovation, such as the computerization of documents, petitions and papers, which
decreases the time to answer the taxpayer. Moreover, CFTs can help to create products, such as computer
programs that can be used not only locally but also in several public organizations related to tax
management.
Originality/value – The field research provides the perceptions of the respondents regarding CFT
characteristics that can lead to specific types of innovation, as well as the types of products or services that
can be generated by these processes.
Keywords Innovation, Teams, Public management, Cross-functional integration
Paper type Case study
1. Introduction
The challenge to improve performance imposes the need to innovate on public
organizations. In public administration, process innovation (Dosi, 1988; Brito et al., 2009;
Cunningham and Karakasidou, 2009) corresponds to new procedures and ways of working,
The authors thankfully acknowledge financial support from Fundação de Amparo à Pesquisa do
Estado de Minas Gerais (FAPEMIG) through the project APQ 02518-15.
TPM
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Received 19 December 2016
Revised 6 June 2017
Accepted 12 September 2017
Team Performance Management:
An International Journal
Vol. 24 No. 1/2, 2018
pp. 84-105
© EmeraldPublishingLimited
1352-7592
DOI 10.1108/TPM-12-2016-0056
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1352-7592.htm
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http://dx.doi.org/10.1108/TPM-12-2016-0056
such as customer service, decentralization of public answering (Seabra, 2001; Pollitt and
Bouckaert, 2002), as well as the management of cross-functional integration (Page, 2005).
Cross-functional integration is the state of interaction and collaboration between the
internal functions of an organization (Kahn and Mentzer, 1996). According to Pimenta et al.
(2014), cross-functional teams (CFTs) constitute an important managerial mechanism that
provides integration between internal functions by means of formal and informal
cooperation processes.
The use of CFTs can allow resources to be used more effectively than when managed by
isolated departments or functions, as proposed by the approach suggested by classic
administration. This effectiveness refers to the ability to solve problems, produce quality
goods and services and increase creativity and innovation (Pinto et al., 1993). The literature
about CFT has mainly been based on studies of the development of projects and products
(Pimenta et al., 2014).
The studied literature covers innovation application contexts (Golden, 1990; Sanger and
Levin, 1992; Borins, 2002; Tushman and Smith, 2002; Potts, 2009; Potts and Kastelle, 2010;
Sartori, 2011), as well as proposals for the formation of innovation diagnostic tools in
organizations (Kupfer and Hasenclever, 2002; Ibge, 2005; OECD, 2005; Cunningham and
Karakasidou, 2009; Australian Government, 2011). Moreover, some authors have identified
relationships between innovation and the public sector (Sanger and Levin, 1992; Kearney
et al., 2000; Røste, 2004; Vigoda-Gadot et al., 2008; Cunningham and Karakasidou, 2009;
Damanpour and Schneider, 2009; Potts, 2009; Potts and Kastelle, 2010).
The studied literature on CFTs concentrates on the following lines:
� the performance impact resulting from the use of CFTs (Maltz and Kohli, 2000;
Krohmer et al., 2002; Luo et al., 2006; Turkulainen and Ketokivi, 2012);
� research and product development (Love and Roper, 2009; Hirunyawipada et al., 2010);
� CFTs in the context of the supply chain (Alvarado and Kotzab, 2001; Gimenez, 2006;
Van Hoek and Chapman, 2007); and
� knowledge management within the CFTs (Luo et al., 2006; Edmondson and
Nembhard, 2009; Hirunyawipada et al., 2010).
However, there are research studies that specifically address the impact of cross-functional
integration in innovations in the public sector (Barrows and Mcinerney, 2002; Wong et al.,
2009; Zheng and Zheng, 2013; Wilkinson, 2015). These research studies present important
investigations and concepts in the CFT literature. However, they do not specifically
characterize the types of operationalization of CFTs with regard to team formation and
integrative efforts toward reaching innovation. Considering this as a research gap, the
following research question is proposed:
RQ1. How can the CFT be applied to encourage innovation in the public sector?
The objective of this research is to characterize how innovations in processes and products
occur through the support of CFT in a public sector organization. A framework is proposed
to explore points of contact between these two themes and to provide explanations of the
functioning of this mechanism in the management of innovation in the public sector. To
address this issue in greater depth, this unique case study was performed in the State
Treasury Office (STO) of Minas Gerais, Brazil. This organization is relevant to the research
objective, as it has made efforts to promote product and process innovations using various
CFT. Moreover, its practices have been adopted in several public organizations in different
states.
Innovation and
cross-
functional
teams
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2. Literature review
In face of the increasing complexity of the environment, governments around the world have
faced pressure to respond to the demands of their citizens (Alberti and Bertucci, 2006). To
create solutions for new emerging problems, the “New Public Administration” is appearing.
Public management is going through a phase in which it must innovate to meet social
demands (Alberti and Bertucci, 2006; Brandão and de Fátima Bruno-Faria, 2013). Thus, this
topic has become an important focus of governments (Brandão and de Fátima Bruno-Faria,
2013). The literature about cross-functional integration has mentioned a managerial tool that
can provide an adequate atmosphere for innovation: CFT (Rho et al., 1994; Katzenbach and
Smith, 1993; Pimenta et al., 2014).
CFTs are groups of people who apply different skills, with a high degree of
interdependence, aimed at reaching a common organizational goal (Holland et al., 2000).
CFTs are characterized by diverse expertise provided by different functions that work
together to establish collaborative behavior (Pagell, 2004).
CFT are composed of individuals with varied skill levels and experience and different
academic backgrounds, knowledge, disciplines, occupations or professions, who are
members of different functional areas, such as engineering, production or marketing, and
who gather to solve a problem or perform a task (Edmondson and Nembhard, 2009; Feng
et al., 2010). The adoption of CFT improves innovative performance and product
development (Leenders and Wierenga, 2002; Jugend et al., 2015). These teams can have a
long-term focus, acting on permanent processes, although there may also be temporary
project teams (Edmondson and Nembhard, 2009; Oliveira et al., 2016).
Anthony et al. (2013) demonstrated that CFT, by nature, capture the features of several
departments or organizational functions in carrying out their work. These authors claimed
that cross-functional collaboration ensures the generation, collection, dissemination,
protection and disposition of the project information in a timely manner.
It is widely reported that CFT can generate a positive impact on the performance of
different organizational processes, such as increased individual involvement, better
problem-solving, creative solutions and effective implementation of decisions (Donnellon,
1993; Webber, 2002; Jugend et al., 2015). As the information and research developed by the
team are shared, decisions tend to be more accurate and easier to implement (Brettel et al.,
2011). Feng et al. (2010) added that CFT provide improved coordination and functional
integration in reaching organizational borders, which has an impact on improving the time
involved in the evolution of technology and on reducing the levels of uncertainty.
Thus, we highlight the factors influencing cross-functional cooperation, such as the
superordinate objectives, physical proximity and project team rules and procedures, which
have a significant direct and/or indirect effect on the results of the project (Pinto et al., 1993;
Lichtenstein et al., 2004). Anthony et al. (2013) added that the performance of the team can be
composed of many factors, such as achieving the goal, team satisfaction and project
efficiency.
2.1 The proposed framework
Figure 1 presents the three main constructs of the framework, as well as its components.
Each construct is explained, in the following paragraphs, according to the studied literature.
These constructs were chosen due to their capacity to explain the different possibilities of
the characteristics of CFTs and their respective influence on the innovation processes.
Moreover, these innovation processes may generate several types of impact in the public
sector due to the adoption of CFTs in decision-making, process management, project
management and new product/service development.
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2.1.1 Team characteristics. The first component of this construct is the Team Formation
that brings about the configuration of the CFT. CFTs are managerial mechanisms that
integrate people from different areas through formal and informal processes, i.e. the
interaction processes of formal communication and/or collaboration processes based on the
existence of trust, mutual understanding and group spirit among the members (Kahn and
Mentzer, 1998; Pimenta et al., 2016).
Oliveira et al. (2016) stated that CFTs may be diverse in terms of their constitution. These
authors argued that these teams have a higher capacity to perform the demanded tasks if
they have senior members. The CFTs can be either permanent ones that deal with regular
processes or temporary teams that perform a task force activity (Wang and He, 2008;
Edmondson and Nembhard, 2009). The members of the CFT can be selected by their
specialty, with regard to the nature of the process, or based on the affinity among the
members (Sarin andMahajan, 2001, Lichtenstein et al., 2004, Feng et al., 2010, Hsieh, 2010).
The second component of this construct is the Development of the team’s activities,
which brings about the integration mechanisms existing within the team. Integration can
occur though several mechanisms, such as the establishment of common goals, adequate
communication and top management support (Pimenta et al., 2014). Several types of
integration mechanisms may exist within CFTs to improve innovation, achieve
cohesiveness among the members and integrate the departments involved with the project
tasks, as indicated in Table I.
2.1.2 Innovation settings. The main idea of the proposed framework is to analyze how
CFTs, considering their diversity of settings, can stimulate innovation. Innovation occurs in
several forms. This particular construct brings about different settings of innovation:
radical/incremental, products/processes, public answering/internal processes.
The Project MEPIN (Measuring Public Innovation in the Nordic Countries) from the
Danish Agency for Science, Technology and Innovation and the Innovation Indicators
Project in the Australian public sector (APSII) define innovation as the implementation of a
significant change in the way the organization operates or in its products. Innovation
implies new or significant changes to services and goods, processes, methods or answers for
users (Australian Government, 2011).
Figure 1.
Constructs of the
proposed framework
Team formation
- Formal/ informal
- Temporary/ Permanent
- Affinity/ Specialty
Development of team’s
activities
- Common goals and reward
systems
- Communication and
knowledge sharing
- Top Management support
- Trust
- Physical proximity
- Job rotation
- Inter-functional meetings
- Behavior and Attitudes of
the Team
TEAM
CHARACTERISTICS
Public Answering
Internal Processes
INNOVATION
SETTINGS
Products
Processes
Radical
Incremental
Economic improvements
IMPACTS OF CFT IN
THE PUBLIC SECTOR
Strategy improvements
Management improvements
Crisis management
Innovation policies
Leadership
Innovation and
cross-
functional
teams
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To eliminate policies and implement Schumpeter’s “creative destruction”, the public sector
should act upon previously tested knowledge and scientific methods and not imitate other
public practices or import models from the private sector (Potts and Kastelle, 2010). In the
Public Sector Innovation Project (PUBLIN), a number of ways in which innovation can
occur, either in public answering or internal processes, were identified (Røste, 2004).
Innovation in the public sector does not always result in new public services but may be
linked to institutional renewal, new forms of governance, process innovation, digitalizing or
organizational improvements (for example, changes in management techniques, the
introduction of performance management or strategic planning), which are not always
labeled as “innovations” (Cunningham and Karakasidou, 2009).
With regard to products and processes, innovations are considered incremental or radical
(Christensen and Raynor, 2002). Radical innovations are associated with organizations that
have an experimental culture, business climate, decentralized structure, flexible work
procedures, informal structures, heterogeneous human resources and strong technical skills.
Incremental innovation depends on more traditional structures (Tushman and Smith, 2002).
Based on the definitions thus submitted (Tushman and Smith, 2002; OECD, 2005), the
authors of this study define innovation as any change in the organization noticeable to
individuals, such as communication, services or procedures, implemented radically or
incrementally, resulting in improvements and advantages for the institution.
Table I.
Integration
mechanisms in CFTs
Integration
mechanism Description Authors
Non-conflicting
goals
Alignment among the CFT, the departments involved
with the project and the organizational as a whole, in
terms of objectives
McDonough III (2000), Pinto
et al. (1993), Pimenta et al.
(2014)
Top management
support
Recognition and support from senior managers to
avoid conflicts and facilitate the flow of the processes
conducted by the CFT
McDonough III (2000), Holland
et al. (2000)
Trust Mutual confidence among members of the team that
helps to deal with personal differences
McDonough III (2000)
Reward systems
based on team
indicators
Personal yield indicators based or linked to collective
goals
Hauptman and Hirji, 1999;
Proehl (1997)
Physical proximity The infrastructure of the buildings facilitates the
contact between areas
Pinto et al. (1993)
Job rotation Changing team members to another function, either
temporarily or permanently
Jugend and Silva (2012)
Inter-functional
meetings
Meetings that involve people from different functions.
It helps to accelerate processes and to accomplish
activities according to the scheduled timeframe
Jugend and Silva (2012)
Adequate
communication
Management facilitates communication between
functional teams through technologies. In addition,
there is frequent interpersonal communication
irrespective of the formal requirement
Pimenta et al. (2016)
Behavior and
attitudes of
the team
Relate to the informal characteristics of the
relationships between people that contribute to the
integration of internal areas, i.e. the initiative to help
each other to reach the organization’s goals
Oliveira et al. (2016)
Source: Prepared by the authors from the theoretical review
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2.1.3 Impacts of cross-functional teams in the public sector. Several authors identified in
Table II mentioned the influence of CFTs in the performance of public organizations in
terms of their capacity to innovate. Table II presents these impacts and the respective areas
of improvement.
3. Research method
A case study was conducted in the STO (STO, 2014) of Minas Gerais, Brazil, which is a
public administration organization that formulates economic, financial, fiscal and tax
policies and consistently seeks modernization. In spite of being a single case-study,
employees from 16 different cities were investigated, i.e. 16 different regional units of the
STO. This organization allowed the main issues related to the theme of this paper to be
addressed because it is involved in actions that aim to promote incremental and radical
innovation, both in products and processes. In addition, exploratory checks with the
managers verified that these processes of innovation are managed with various CFT. Thus,
we can confirm that the case studied allows the analysis of the key elements of this paper.
3.1 Data: collection sources and analysis types
The data collection occurred from in-depth interviews, document analysis and personal
visits to the departments. To select people who were effectively involved with the proposed
theme, two procedures were adopted:
(1) Initial interviews with senior managers were conducted to identify CFT that dealt
with innovation processes; and
(2) After identifying the CFTs, an effort was conducted to select the members who
have had contact with the innovation processes within these teams.
Table II.
Main relationships
between cross-
functional teams and
public service
Area Impact Authors
Economy Improvement in the responsiveness of Governments to
social needs in the face of market dynamics
Barrows and Mcinerney (2002)
Strategy Facilitate faster responses, coordination and availability of
data
Increase departmental effectiveness
Wong et al. (2009)
Management Help in organizational learning, innovation and building a
shared culture
Increase in job satisfaction of public employees and as a
result facilitate an effective and efficient management
system
Facilitate an effective and efficient management system
Increase the efficiency and effectiveness of a process
Barrows and Mcinerney
(2002), Too (2012)
Crisis
management
Mobilization of resources from different departments
within the seat of the municipality
Wilkinson (2015)
Innovation
policies
Financial investment initiatives of Government and
establishment of development systems to boost innovation
in the country, region or industrial segment
Barrows and Mcinerney
(2002), Zheng and Zheng
(2013)
Leadership Ineffective leadership in cross-functional teams inhibits
collaboration, causing the members not to recognize the
importance of achieving results
Henderson et al. (2013)
Source: Prepared by the authors from the theoretical review
Innovation and
cross-
functional
teams
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After these initial procedures, 60 members from 11 CFTs were selected and invited by email.
In all, 25 of them agreed to participate in the interviews. All of them participated in CFT
during the field research period.
Table III shows the respondents and the characteristics of their jobs, the length of their
public service and their work unit. The “Acronym” field corresponds to the identification of
the respondents.
The study approached 11 teams with the following objectives:
(1) building a tool for data analysis;
(2) building a road map for the application of digital auditing;
(3) building a tax audit system;
(4) building software for registration management;
(5) creating routines and assessing the management of the units;
(6) creating routines for fiscal search and seizure;
(7) forming and deploying a “tax education” project at the regional teaching
superintendence;
(8) deploying electronic processes;
(9) improving the organizational climate;
(10) tax collection procedures; and
Table III.
Characteristics of the
respondents
Acronym Position Work unit
RESP 1 Tax Auditor Transit Tax Precinct
RESP 2 Tax Auditor Supervision Superintendence
RESP 3 Treasury Office Manager Regional Superintendence
RESP 4 Tax Auditor Fiscal Precinct
RESP 5 Tax Auditor Criminal Tracking Core
RESP 6 Tax Auditor Fiscal Precinct
RESP 7 Tax Auditor Transit Tax Precinct
RESP 8 Tax Auditor Fiscal Precinct
RESP 9 Tax Auditor Criminal Tracking Core
RESP 10 Tax Auditor Fiscal Precinct
RESP 11 Tax Auditor Fiscal Precinct
RESP 12 Treasury Department Manager Treasury Administration
RESP 13 Treasury Department Manager Treasury Administration
RESP 14 Tax Auditor Supervision Superintendence
RESP 15 Treasury Department Manager Regional Superintendence
RESP 16 Treasury Department Manager Treasury Administration
RESP 17 Tax Auditor Regional Superintendence
RESP 18 Tax Auditor Regional Superintendence
RESP 19 Treasury Department Manager Treasury Administration
RESP 20 Tax Auditor Fiscal Precinct
RESP 21 Treasury Department Manager Supervision Superintendence
RESP 22 Tax Auditor Transit Tax Precinct
RESP 23 Tax Auditor Supervision of Collection
RESP 24 Treasury Department Manager Supervision of Taxation
RESP 25 Treasury Department Manager Treasury Administration
Source: Elaborated by the authors
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(11) resolution of problems regarding the interpretation and application of the legal
standards in accounting audit jobs.
The interviews were audio-recorded with the proper authorization of the respondents and
had an average duration of 55 minutes each, totaling 15 h.
We used a questionnaire with open-ended questions from the literature on innovation-
related and CFT. It is important to highlight that the questionnaire was developed with the
objective to characterize the constructs that informed the research framework shown in
Figure 1 (team characteristics, innovation settings, impacts of CFT). The questions, their
respective categories and the support from the literature are presented in Table IV.
3.2 Content analysis and research quality
To identify the registration units about how the CFTs operate and their relationship with
different types of innovation, the interviews were transcribed and subjected to the content
analysis technique. These registration units were categorized according to the three
constructs defined in Table IV: Team characteristics, Development of the activities of the
CFT and Innovation. Based on the guidelines of Bauer and Gaskell (2002), the following
steps were adopted:
� pre-analysis of transcripts: quick read, prior identification;
� in-depth analysis;
� description of the units of registration: the particular meaning of each element is
displayed in frames; and
� categorization: registration units are grouped into categories defined in the literature
or observed in the context of the object of study.
The following five procedures were adopted to improve research quality:
� Pretest: The questionnaire was previously submitted to four specialists (two
academics and two practitioners) to evaluate its capacity to collect the necessary
data.
� Number of coders: The coding process was performed by two researchers to obtain
a consensus in the data analysis.
� Confirmation of results with respondents: After coding and categorization, the
elements were sent to the interviewees to confirm their meaning.
� Content saturation checking: New interviews were conducted until new codes
stopped emerging from the data analysis or become redundant.
� Confirmation of the categories’ reliability: Categories and codes were sent to two
specialists for evaluations of the set of information obtained from the analysis.
� Audio recording: The interviews were audio-recorded for later transcription to
ensure the accuracy of the information obtained in the interviews.
4. Results
For a greater understanding of the CFTs of the STO, it is important to outline the profile
of the employees. It is not necessary to have graduated from a specific course to assume
the position of Tax Auditor, Treasury Manager or Treasury Technician; rather, any
graduation in higher education is sufficient. In this way, there are civil servants trained
Innovation and
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Vision Research issues Author
Team
characteristics
Why was the cross-functional team
necessary?
Athanasaw (2003), Denison et al.
(1996), Feng et al. (2010), Gopal et al.
(2004), Pimenta et al. (2014)
Was the team formed by directors (formal
or informal)?
Denison et al. (1996)
Is the team permanent or temporary? Edmondson and Nembhard (2009),
Wang and He (2008)
Are there temporary members on the team? Feng et al. (2010), Hsieh (2010),
Lichtenstein et al. (2004), Sarin and
Mahajan (2001)
What is the function of each member?
What is reason for the selection of these
functions to achieve the purpose of the
team?
What is the selection process of the
members of the team?
What motivates the member to join the
team?
Is there a manager to control the activities
of the team?
Daspit et al. (2013), Donnellon (1993),
Edmondson and Nembhard (2009),
Proehl (1997), Wang and He (2008),
Webber (2002)
Is the management formal, informal or
neutral?
Development of
the activities of
the CFT
Are the goals shared by all the members of
the team or are they individual?
Athanasaw (2003), Brettel et al.
(2011), Daspit et al. (2013), Donnellon
(1993), Katzenbach and Smith (1993),
Pinto et al. (1993), Proehl (1997)
How is communication between the
members?
Athanasaw (2003), Edmondson and
Nembhard (2009), Kotlarsky et al.
(2012), Majchrzak et al. (2012)How are the clashes and obstructions
solved between divergent ideas?
Does the collaboration among the members
occur naturally or is it stimulated?
Donnellon (1993), Pinto et al. (1993),
Edmondson and Nembhard (2009),
Ghobadi and D’ambra (2012),
Lichtenstein et al. (2004)
Is there competition between the members
of the teams?
Is there sharing of knowledge? How does it
occur?
Ghobadi and D’ambra (2012),
Majchrzak et al. (2012)
Is there top management support? Donnellon (1993), Proehl (1997),
Jugend et al. (2015)
How is the team assessment performed? Anthony et al. (2013), Sarin and
Mahajan (2001), Wang and He (2008)
Innovation Did this process emerge as a search for
constant and gradual improvement
(incremental innovation) or did it occur
through the rupture and breaking of
paradigms (radical innovation)?
Bessant et al. (1994), Brandão and
Bruno-Faria (2013), Christensen and
Raynor (2002), Leifer (2000), Oecd
(2005), Potts (2010), Potts and
Kastelle (2010), Sartori (2011),
Tushman and Smith (2002)
Did the implementation allow initial design
changes (flexible) or were changes and
adjustments not permitted (rigid)?
Sartori (2011), Tushman and Smith
(2002)
Did innovation occur in the public
answering with new features or designs of
products and production processes provide
services or interact with users or the
resolution of tasks?
Røste (2004)
(continued )
Table IV.
Research issues to
characterize
functional teams and
typify the innovation
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in various courses like administration, law, accounting, psychology, veterinary
medicine and dentistry, among others.
[. . .] The experience that each one has, that each one carries out just contributes to the process
as a whole. Teams are formed by various people, from various areas of work with different
academic formations, with different values and cultures, which does not produce uniformity
of thought; there is not a single line of thought. There are the guidelines of the institution, but
that does not mean that there is an automatic alignment of the way of thinking of the servers.
(RESP 18)
Therefore, because of the very nature of the public servant in the organization, the
results of the teams are a hodge-podge of various skills, which seems to contribute to
both the creation of CFT and to the innovation process. In the following paragraphs,
each item of the proposed framework is explained according to the characteristics of the
case study.
4.1 Characteristics of the surveyed cross-functional teams
Despite the predominance of formal teams in the study conducted (72.73 per cent), informal
teams produced entirely new systems and scripts in the organization. These systems have been
fully adopted and implemented throughout the institution. There is even a case of a tax audit
system cited by RESP 2. In that case, the new product was implemented by other States, which
Vision Research issues Author
Did innovation occur at the internal
processes level with new or changed ways
to organize or administrate activities, ways
to interact with other organizations or
systems of beliefs, missions and strategies?
Do revolutionary advances characterize the
implementation of innovation?
Alternatively, did it occur gradually
through a process of trial, error and
learning?
Potts (2009), Potts and Kastelle
(2010), Sanger and Levin (1992)
Does the responsibility of the innovation
process come from top-down or bottom-up?
Borins (2002)
Was there a plan for the implementation of
innovation or was it conducted intuitively
and informally?
Golden (1990)
What was the degree of education of the
manager responsible for innovation?
Damanpour and Schneider (2009),
Kearney et al. (2000), Sanger and
Levin (1992), Schwella (2014),
Vigoda-Gadot et al., (2008)
Does the person responsible for innovation
take risks? Is he/she aware of the
bureaucratic and political obstacles that
innovations face?
Was there any gain with the delivery of the
innovation?
Brito et al. (2009), Crespi and Zuñiga
(2012), Dosi (1988), Freeman (1984),
Ganotakis and Love (2010)
Source: Prepared by the authors based on the indicated literature Table IV.
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broke paradigms, with new systems and processes being installed. We observe, therefore, that
informal teams develop around product innovation projects or previously unknown processes.
The temporary CFTs disband as soon as the work they proposed to do is completed, but
in some cases, they re-form, in view of the affinity of the members, generating new
innovative processes.
[. . .] Nearly all teams, after their purpose is fulfilled and when there is no more formal obligation
to work together, fall apart. However, there is an extremely durable case; they have already
worked for almost 10 years together in partnership. (RESP 2)
Among the seven permanent teams (57.14 per cent), six are formal and one is informal, and
four of them have temporary members. In the temporary teams, the temporary member
index is 80 per cent. When we analyzed by type of team, we realized that the number of
temporary members on formal teams (62.50 per cent) approximated that found on the
informal teams (67.67 per cent).
[. . .] The result meant that the work was increasing and I began to feel the need to put someone
else on the team (formal and permanent), and then invited X to work, because he is a
psychoanalyst and helps with the focus on this activity (temporary). (RESP 13)
The specialty of the person developing the work was the determining factor in
the composition of the six teams studied, demonstrating a search for complementary
skills. This factor is reinforced when we analyze by the type of team because only 33.34
per cent of them are formed by affinity, and all the others were formed by work
specialty.
Personal will was the motivation factor for 9.09 per cent of the members of the
teams. On this type of team, the obligation toward work as a motivation factor prevails,
unlike the informal teams, where innovating, facilitating the work of the institution and
developing new techniques for work motivates 100 per cent of the interviewed
employees.
[. . .] Believe, right? People believe that the work will pay off and they get involved. (RESP 3).
[. . .] The motivation is to serve, collaboration [. . .] contributing toward others having their
workload reduced should always be more important than building something alone, it could never
be personal satisfaction, but rather the satisfaction of others. (RESP 4).
[. . .] The greatest motivation was the complexity of the matter and the innovation of the work.
(RESP 6).
[. . .] In face of the difficulties of other colleagues, the members of the team and I sat down and
said: “we’re going to develop this roadmap to help our colleagues” (RESP 11).
Temporary teams produce 56.57 per cent of product innovation. These CFTs have
innovated products or products and processes together. We found that only the formal
teams exclusively introduced process innovation, as shown in Figure 2.
A direct relationship was noted between the type of team (formal/informal) and the
responsibility for the innovation process, i.e. in formal CFTs, the responsibility for
innovation is from the top down, whereas in informal CFTs, it occurs from the bottom up.
[. . .] The person who’s coordinating has to be in control so there is no conflict, as these are actions
under extreme stress, so that conflict is dangerous! (RESP 10) [. . .]. As much as we have another
understanding, the final word of any action in this regard is from the boss! (RESP 17).
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4.2 Innovation settings in the surveyed cross-functional teams
The surveyed CFTs have helped in the development and implementation of innovations in
processes (46 per cent), in products (27 per cent) and products and processes merged
(27 per cent).
From the point of view of this organization, product and process innovation together is
technically something very new, not just an upgrade or improvement of what already
existed. On the other hand, process innovation alone comes from improvements. In relation
to innovative product analysis, it was found that two computer systems generated by the
CFTs analyzed in this study were awarded by the government of Minas Gerais in a contest
for innovative public management. This fact certifies that these products did not previously
exist in the public administration of that State.
Of the five teams that performed processes of innovation, two of them generated entirely
new processes for the institution. The others contributed to the quest for constant and
gradual improvement.
Of the six teams that contributed product innovation or processes that were previously
unknown by the organization, it was noticed that after the implementation of the product or
process, new waves of innovation occurred. However, they stemmed from improvements,
that is, incremental innovation. This data show that the innovations produced are mostly
flexible (81.82 per cent), i.e. liable to change.
This first version [of the software] broke the paradigm; from then on, we were adding content and
tools, and by this, I mean that innovation is a ladder with some jumps (RESP 4).
Innovation can affect organizations at the internal processes level with new ways to
organize or manage activities, interact with other organizations, as well as generate new
systems of beliefs, missions and strategies (Røste, 2004). In this study, we found a balance in
the CFTs analyzed, as five innovations caused an impact on internal processes, another five
caused an impact on public answering, and one led to an impact on both internal processes
and public answering.
4.3 Discussion of the impact of cross-functional teams as a driver for innovation
This topic discusses the relationships between the basic elements of the proposed
framework: team characteristics, innovation settings and impacts. Each type of surveyed
CFT results in a type of impact (internal processes, public answering or public answering/
Figure 2.
Team�member
selection process�
innovation
Innovation and
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teams
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http://www.emeraldinsight.com/action/showImage?doi=10.1108/TPM-12-2016-0056&iName=master.img-000.jpg&w=307&h=154
internal processes) according to the innovation produced. Figures 3, 4, 5 and 6 present cause-
and-effect diagrams in which they identify the relationships between the characteristics of
the CFT, the type of innovation that was generated and the impact for each type of
innovation.
4.3.1 Permanent formal cross-functional team. This is the only type of CFT that included
the three types of member selection (affinity, specialty or by management) in their
formation. Those formed by affinity generated only incremental process innovation with an
impact on internal processes. Member selection by specialty produced something new in
products and processes jointly, which was previously unknown and produced effects on
public answering. Finally, the CFTs formed by the management influenced both public
answering and internal processes through the innovation of processes that were previously
unknown by the organization.
We have a broad variety of types of companies, and each place that we conduct search and
seizure, we find a different story. So, we created auditory manuals with standards to continuously
improve the procedures (RESP 1).
4.3.2 Permanent informal cross-functional team. These teams worked only with product
and process innovation together and produced an impact on both public answering and
internal processes. They work basically with formal meetings, but there is an informal
atmosphere of trust and mutual understanding among the members. The selection of its
members was according to the specialty of each in relation to the work done.
Figure 3.
Permanent formal
CFT� impacts
generated
Figure 4.
Informal permanent
CFT� impacts
generated
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[. . .] In the teams assembled by the formality of public service work, the job is executed,
but for the longer-lasting jobs, of which I’m most proud, the formation of the group was
informal, by the identification of members (RESP 2). [. . .] These also led to longer-lasting jobs.
(RESP 2)
These concepts from the case support P1:
P1. Informal permanent teams show a greater capacity to generate innovations with an
impact on the scope of internal processes and public answering jointly (Respondents
1, 2, 4 and 18).
4.3.3 Temporary formal cross-functional teams. The temporary formal CFTs, which were
formed based on the specialty of each member, produced two types of innovation. One
innovated process incrementally, whereas the other worked with products and processes
together, which were unknown previously. When the member selection was done by the
Figure 5.
Temporary formal
CFT� impacts
generated
Figure 6.
Informal temporary
CFT� impacts
generated
Innovation and
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management, the products were incrementally innovated with an impact on internal
processes.
Between 2001 and 2002, the Organization advanced through a modernization of several processes
to create a system to reduce bureaucracy. We improved a software in order to simplify the
internal work. The system facilitates the performance of the work (Resp12).
These concepts from the case support P2:
P2. Formal temporary teams show a greater capacity to generate incremental
innovations of products (Respondents 1, 5, 7, 9, 10 and 12).
4.3.4 Temporary informal cross-functional teams. The innovations produced by these
teams were simply because the products or processes they created were previously
unknown (Figure 6).
When a person with technical knowledge joined the team, we started to have the possibility to
create a new tool. The decision was ours; there was no determination from the Organization or
from the management. It was an initiative of two colleagues. It was a new product, not an
improved one. Such a creation was a paradigm break, and since its implementation, we have been
adding content (RESP 4).
These concepts from the case support P3:
P3. Product-only innovations can be reached by formal or informal temporary teams
(Respondents 1, 2, 4, 5, 6, 7, 8, 9, 10, 11 and 12).
Moreover, in the studied case, the innovation of processes does not seem to be generated in a
specific context in terms of formality/informality and duration. These concepts support P4:
P4. Process-only innovations can be reached either by formal (permanent or temporary)
or informal teams (Respondents 1, 2, 8, 9, 10, 13, 14 and 15).
In the studied case, the teams formed by member affinity innovated products together with
processes and had an impact on public answering. The CFT, in which the expertise of the
people was the member selection criterion, had a level impact on internal processes through
product innovation. This concept from the case supports P5:
P5. Joint product and process innovations occur when the members are organized by
affinity or specialty when the teams are not formed by management (Respondents 2,
4, 12 and 14).
5. Conclusions
The present study sought to broaden the discussion about CFTs and innovation in the
public administration scenario. An understanding of these aspects can contribute to a more
coordinated management of CFTs and, primarily, are a means to encourage innovation in
the public sector.
The predominant type of CFTs in the public organization studied is a formal team with a
permanent duration and the participation of non-permanent members in the development of
the project. When formed based on affinity among members, the teams only generated
incremental process innovation with an impact on internal processes, i.e. they changed the
way they organize or manage their activities. When the member selection criterion was by
specialty, they produced something new in products and processes jointly that was
previously unknown and had effects on public answering, which changed the way they
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interact with customers or accomplish tasks, e.g. the development of software to improve
answering for people. Finally, when the management carried out the selection of the
members, the teams influenced both public answering and internal processes through
processes that were previously unknown by the organization.
The literature review phase showed the shortage of research involving the three themes
together: public administration, innovation and CFT. In the works cited and taken as
references for innovation in the public sector, we noticed a certain reluctance in the Brazilian
academic research concerning this topic. With respect to our exploration of the concept of
CFT and the impact generated in this context, it can be said that the subject is singular if not
unique in the level of studies of public administration in Brazil.
Through the interpretation of the collected data, we see that products such as computer
programs and projects with other public and private entities are created and implemented
by CFT formed in the public organization. Two computer programs generated by CFTs
received awards by the government of Minas Gerais in a contest for innovative public
management. In addition, it was also verified that there is a national digital tax audit system
in most Brazilian States whose initial project was generated by an informal CFT from the
Treasury Office of Minas Gerais.
The analysis of the results of the research also showed that in the CFTs formed in the
public institution analyzed, the predominant type is formal with a permanent duration and
in which non-permanent members participated in the development of the project. The work
specialty is the main criterion in the selection of members. This topic presented relationships
with the innovation produced, as further explained below.
As for the motivational aspect, the most considered factor on formal teams is the
obligation to work, whereas on informal teams, it is the development of new work
techniques. We found a direct relationship between the type of team (formal/informal) and
the responsibility for the innovation process, i.e. in formal CFTs, the responsibility for
innovation is from the top down, whereas in informal CFTs, it occurs from the bottom up.
5.1 Managerial implications
The theoretical development of this research, which is summarized in Figure 1 and Table I,
indicates some practices that can help managers, not only in the public sector but also in
private organizations to improve their managerial activities toward innovation. Moreover, it
was possible to outline the effects of innovation in the public sector on internal and external
structures. The main points of impact from innovation are the productivity gains, cost
reductions and economic results. The improvement in productivity was noted in all the
CFTs studied. One of the studied teams created a data analysis tool that resulted in a time
reduction for the analysis and verification of taxpayers in debt to the State.
Regarding the efficiency of processes, CFTs were responsible for the computerization of
documents, petitions and papers, decreasing the time to answer the taxpayer from 30 to 3
days. Other respondents were responsible for the creation of computer programs that are
currently used at the national level. The other gains, cost reductions and economic results,
despite being noticeable, are difficult to measure because the entity studied is a non-profit
and its costs are predominantly for the maintenance of the structure.
5.2 Theoretical contributions
The categories that emerged from the field research related to CFTs and Innovation were
based on the literature used for the definition of the questionnaire. From the application in
the field, it was possible to identify practical features for each of these categories and
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relationships between the categories of CFTs and the types of actions and results related to
innovation.
These relationships constitute the main contribution of this research. The literature
shows that the use of CFTs in the public sector tends to stimulate innovation (Barrows and
McInerney, 2002; Wong et al., 2009; Zheng and Zheng, 2013; Wilkinson, 2015). However,
these studies do not show how these teams must be configured and managed to generate an
impact on innovation. This study contributes to the improvement of this relationship
because it:
� confirms the constructs in literature (Edmondson and Nembhard, 2009; Feng et al.,
2010; Ghobadi and D’ambra, 2012; Anthony et al., 2013; Daspit et al., 2013; Pimenta
et al., 2014) about CFTs and features the perspective of a case studied in the public
sector;
� confirms the constructs in the literature (Røste, 2004) on innovation by establishing
a relationship between the types of innovations and their effects on the generation of
products/services and the ways in which this can occur; and
� examines the perceptions of the respondents regarding the CFT characteristics that
can lead to specific types of innovation (Potts and Kastelle, 2010; Sartori, 2011), as
well as the types of products or services that can be generated by these processes.
On the relationship between the CFT constructs and innovation present in Figures 2, 3, 4
and 5, we can highlight the following propositions and the respondents who perceived them:
� P1. Informal permanent teams show a greater capacity to generate innovation with
an impact on the scopes of internal processes and public answering jointly
(Respondents 1, 2, 4 and 18).
� P2. Formal temporary teams show a greater capacity to generate incremental
innovations of products (Respondents 1, 5, 7, 9, 10 and 12).
� P3. Product-only innovations can be reached by formal or informal temporary
teams (Respondents 1, 2, 5, 6, 7, 8, 9, 10, 11 and 12).
� P4. Process-only innovations can be reached by formal (permanent or temporary) or
informal teams (Respondents 1, 2, 8, 9, 10, 13, 14 and 15).
� P5. Joint product and process innovation occurs when the members are organized
by affinity or specialty when the teams are not formed by the management.
(Respondents 2, 4, 12 and 14).
These propositions are exploratory and originated from the perceptions of the respondents
in the case studied. Future surveys should be carried out to verify their validity in other
public organizations in different contexts.
5.3 Limitations and suggestions for future research
The limitations of this research relate to the fact that this is a single case study, and
although it is an important case to examine innovation and CFTs, by its very nature, it is not
possible to extend and generalize the obtained data to other organizations. We also did not
analyze the potential influence of other team characteristics on innovation, such as age,
education, sex, number of members, tasks and responsibilities. Future research could
analyze the present theme based on a deeper view of these elements of team composition.
The lack of measurement of innovation was another limiting aspect of this research. The
inquiry about innovation in the case was grounded in the questionnaire of the Innovation
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Survey (Pintec), conducted by the Brazilian Institute of Geography and Statistics (Ibge), the
Oslo Manual (OECD, 2005) and in the Community Innovation Survey – CIS version 2008,
proposed by Eurostat (Statistical Office of the European Community). However, the
evaluation of this construct was merely qualitative, and future research is needed to validate
its characteristics.
Future studies in other organizations can be conducted with comparative and
complementary purposes to analyze the innovations promoted by CFTs. We also suggest
extending the study to involve people from other organizations who also participate in these
CFTs to examine the process of CFT integration in different organizations and the reach of
the innovations implemented. The propositions above can also be used in quantitative
research to statistically validate their cause-and-effect relationships.
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Management, McGraw-Hill College, Columbus, OH.
About the authors
Daniel Marasquini Stipp (MSc) is currently an Executive Manager at Secretaria da Fazenda, a public
organization from the financial sector in Brazil. He holds an MSc in Business Management from
Federal University of Uberlândia.
Márcio Lopes Pimenta (PhD) is a Professor at Management and Business College, Federal
University of Uberlândia, Brazil. He got his Phd in Production Engineering at Federal University of
São Carlos and his Msc in Business Administration at Federal University of Uberlândia. Dr Pimenta
has published articles in The International Journal of Productivity and Performance Management,
European Business Review, Journal of Technology Management & Innovation and International
Journal of Logistics Management. His main research topics are cross-functional integration between
Marketing, Logistics and other internal functions, integration in product development processes and
the influence of human values on consumer behavior. Marcio Lopes Pimenta is the corresponding
author and can be contacted at: pimenta.mp@gmail.com
Daniel Jugend (Phd) is a Professor at Production Engineering Department of Unesp – Campus de
Bauru, Brazil. He got his Phd and his Master in Production Engineering at Federal University of São
Carlos. Dr Jugend has published articles in Journal of Business Research, Journal of Cleaner
Production, Innovation, International Journal of Business Innovation and Research and Journal of
Technology Management & Innovation. His main research topics are product portfolio management,
product development and cross-functional integration.
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Innovation and
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This article has been cited by:
1. 2019. Getting across cross-functional teams. Human Resource Management International Digest
27:2, 31-33. [Abstract] [Full Text] [PDF]
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https://doi.org/10.1108/HRMID-03-2019-0058
https://www.emeraldinsight.com/doi/full/10.1108/HRMID-03-2019-0058
https://www.emeraldinsight.com/doi/pdfplus/10.1108/HRMID-03-2019-0058
Innovation and cross-functional teams
1. Introduction
2. Literature review
2.1 The proposed framework
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3. Research method
3.1 Data: collection sources and analysis types
3.2 Content analysis and research quality
4. Results
4.1 Characteristics of the surveyed cross-functional teams
4.2 Innovation settings in the surveyed cross-functional teams
4.3 Discussion of the impact of cross-functional teams as a driver for innovation
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5. Conclusions
5.1 Managerial implications
5.2 Theoretical contributions
5.3 Limitations and suggestions for future research
References