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Based on a field study, this article investigates the characteristics of high-performing self-directed teams in technology-oriented work environments and the leadership style most conducive to innovative work group performance. Barriers and drivers critical to effective team performance are identified, and the relationship between the organizational work environment and innovative performance is analyzed. The study shows that effectively managing innovative engineering teams involves a complex set of variables related to the task, people, and organizational environment. The correlation of these variables to performance suggests that to be effective, team leaders must consider both the physical and the psychological environment of the project team to foster a work environment conducive to the team's needs.
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Hans J. Thamhain (1996) studied this question.
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