The Impact of Leader Personality on New Product Development Teamwork and Performance : The Moderating Role of Uncertainty

We examined the affect of leader personality on new product development (NPD) project performance under differing conditions of uncertainty. Our model posits teamwork as a mediating variable between leader personality and NPD performance.We hypothesized that the personality variable of openness would have a stronger influence on teamwork and NPD performance when uncertainty was high, and that the personality variables of extraversion, conscientiousness and stability would have a stronger indirect influence on NPD performance through teamwork when uncertainty was low. We used structural equation modeling to test two models of the influence of personality. In our study of 143 development projects, we support the importance of teamwork as a process variable linking leader personality to NPD performance and confirm that the effects of leader personality on these criteria depend on the level of uncertainty operating in NPD projects, thus substantiating all our hypotheses. Recommendations to re-consider hiring criteria and training for NPD project leaders are provided