The combined roles of team leadership and performance evaluations in creative teams

Abstract

In this paper we analyze the joint effect of transformational team leadership and performance evaluations based on pre-set measures (objective performance evaluations, OPE) in generating creative team performance. In explaining this effect, we argue for a key role of team potency, i.e. the belief of team members in the team’s collective capabilities for being successful. We propose that the effect of OPE on team potency (which itself is considered a main driver of creative performance) depends on whether OPE is combined with a transformational leadership style or not. While the team leader’s use of OPE has a negative main effect on team potency, this negative effect is offset when the team leader exhibits a transformational leadership style. We test the proposed model with data collected from 101 teams and 372 individuals in 53 marketing agencies.