Artificial intelligence and the reconfiguration of NPD Teams: Adaptability and skill differentiation in sustainable product innovation

Abstract

Sustainable product innovation (SPI) is increasingly central to New Product Development (NPD) teams, aligning with global sustainability goals and industry expectations. However, the factors associated with SPI at team level remain underexplored. This study examines the roles of team skill differentiation and team adaptability in fostering SPI, proposing that these factors support teams in the pursuit of sustainability-oriented innovation more effectively. Furthermore, we investigate the moderating role of generative artificial intelligence (GenAI) in shaping the strength of these relationships. Drawing on the double diamond framework and its AI-augmented adaptation, we hypothesize that skill differentiation expands the range of potential solutions in the divergent phase of innovation, while adaptability enhances responsiveness in the convergent phase. GenAI is posited to enhance these effects by augmenting knowledge recombination and real-time strategic adaptation. To test our hypotheses, we conducted a multi-industry survey of NPD teams engaged in sustainability initiatives, applying multiple regression analysis to assess the proposed relationships. All our hypotheses were empirically supported. Overall, this study contributes to SPI research by integrating team capability theory with AI-driven innovation frameworks. The findings highlight the need for firms to cultivate multidisciplinary teams with adaptive capacities while leveraging GenAI as an amplifier rather than a substitute for human expertise. The results also underscore that effective SPI requires both internal knowledge diversity and external responsiveness, alongside AI tools that enhance creativity and sustainability-driven decision-making. Finally, this research provides insights into how NPD teams can enhance their engagement in sustainable innovation, aligning with the broader objectives of Sustainable Development Goals (SDGs) 9 and 12.

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