Coordination Experience and Team Performance: Evidence from the Electronic Games Industry

Abstract

In cross-functional teams, team performance depends on how skillfully function managers carry out the cross-function coordination of team members’ complementary expertise and activities. In this paper, we argue (i) that function managers’ coordination skills develop in part through the coordination experience gained from interacting with managers from other function, (ii) that coordination experience has general and firm-specific dimensions, and (iii) that coordination experience leads to better team performance. Using data on development teams in the electronic games industry, we show that coordination experience and its general and firm-specific components have a positive impact on the commercial success of electronic games, and that this effect is robust to tests for omitted variables and reverse causality. Our results have implications for the theory of learning and coordination in teams and for the strategy and practice of team design in project-based organizations.