The literature on small stand-alone teams has suggested that decentralization has predominantly positive features. However, in multiteam systems, the presence of other highly interdependent teams adds a level of complexity that may preclude generalizing from teams to multiteam systems. We studied the effects of decentralized planning in 210 multiteam systems, each composed of three six-person, functionally specialized component teams. As has previous research, we find that decentralized planning has positive effects on multiteam system performance, attributable to enhanced proactivity and aspiration levels. However, we also find that the positive effects associated with decentralized planning are offset by the even stronger negative effects attributable to excessive risk seeking and coordination failures. We discuss the implications for theories of intrateam and interteam dynamics, along with the applied implications for designing empowerment interventions in team and multiteam contexts.
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