Product Development and Learning in Project Teams: The Challenges Are the Benefits*

The value of teams in new product development (NPD) is undeniable. Both the interdisciplinary nature of the work and industry trends necessitate that professionals from different functions work together on development projects to create the highest‐quality product in the shortest time. Understanding the conditions that facilitate teamwork has been a pursuit of researchers for nearly a half century. The present paper reviews existing literature on teams and team learning in organizational behavior and technology and innovation to offer insights for research on NPD teams. Building on prior work, the organizational benefits of NPD teams are summarized, and five attributes of these teams are identified that hinder attainment of their potential: (1) project complexity; (2) cross‐functionality; (3) temporary membership; (4) fluid team boundaries; and (5) embeddedness in organizational structures. It is argued here that effective management of these five attributes allows not only organization‐level benefits but also team‐level benefits in the form of new capabilities and team member resilience. The critical roles of leadership and of communication and conflict management training are then highlighted as strategies for overcoming the challenges to team effectiveness in NPD as well as for realizing five team benefits: (1) project management skills; (2) broad perspective; (3) teaming skills; (4) expanded social network; and (5) boundary‐spanning skills. The paper concludes with a discussion of the implications of these ideas for conducting future team research.