Maximizing team development for open innovation in digital product development: the role of collaborative HRM and relational leadership

PurposeThe purpose of the study was to maximize team members' collaboration and develop relationships in a newly formed team to engage with internal and external partners to achieve open innovation (OI) in product development. The authors examine the role of collaborative human resource management (HRM) and relational leadership (RL) in this process.Design/methodology/approachThe study took a two-stage qualitative methodological approach to examine relational leadership as it emerges in a newly formed cross-functional team at a large German fashion house. In stage one, 10 interviews were conducted with members of the new project team over three months and in stage two six external knowledge exchange partners were interviewed.FindingsCollaborative HRM promotes greater social exchange, trust and commitment of team members internal and external to the organization to support the emergence of RL, which is critical for OI. The authors found that collaborative HRM practices such as team-based recruitment, team-based training, team-based performance management with rewards systems and job design support the emergence of RL. Moreover, RL practices such as congruence and commitment towards team goals subsequently promoted the development of knowledge sourcing and sharing (KSS) to support OI.Originality/valueThe study is the first to demonstrate how collaborative HRM enables RL practices to help newly formed teams overcome challenges with achieving KSS to successfully engage with internal and external partners for OI. The authors contribute to HRM theory development of the relationship between HRM and OI by conceptualizing the OI process as a social construction through collaborative HRM and relational leadership.