Effects of Information Technology on Team Innovation and Inter-Team Coordination: An Exploratory Investigation of Process Ambidexterity

Business processes are vital for organizational operations. In order to understand the role of process, we use the input-process-output framework to study how standardization and agility of processes are related to inter-team coordination and team innovation. Furthermore, we investigate the effects of information technology (IT) on the capabilities of these processes. In order to conduct a team-level study, 139 teams composed of 1232 individuals from seven Korean companies were analyzed. Our findings are three-fold. First, IT strengthens process capabilities as an enabler. Second, process agility can improve inter-team coordination and team innovation. Third, process standardization has an unexpected positive effect on both inter-team coordination and team innovation.