How and when team knowledge heterogeneity fosters multilevel innovation performance? A multilevel moderated mediation model

Purpose Drawing upon information and decision-making theory, this study investigates the relationship between team knowledge heterogeneity and multilevel innovation performance. It also explores the mediating effects of team knowledge sharing and individual perspective taking, as well as the moderating effect of inclusive climate. Design/methodology/approach Using a time-lagged, paired sample of 456 employees and 93 leaders from Chinese organizations, a multilevel model was developed to test the hypothesized relationships. Findings The findings indicate that, at the team level, team knowledge heterogeneity stimulates knowledge sharing, which then promotes team innovation performance. In addition, inclusive climate positively moderates this relationship. At the individual level, team knowledge heterogeneity stimulates employee innovation performance through perspective taking. Originality/value This study extends the limited literature on team knowledge heterogeneity by integrating a multilevel model linking it to innovation performance. In addition, we highlight the roles of three pertinent aspects: knowledge sharing, perspective taking and inclusive climate.