THE EFFECTS OF PSYCHOLOGICAL CAPITAL AND TEAM STRAIN ON THE EFFECTIVENESS OF NPD TEAMS: THE MODERATING ROLE OF PERCEIVED DIVERSITY CLIMATE Title: THE EFFECTS OF PSYCHOLOGICAL CAPITAL AND TEAM STRAIN ON THE EFFECTIVENESS OF NPD TEAMS: THE MODERATING ROLE OF PERCEIVED DIVERSITY CLIMATE Authors: BADRI MUNIR SUKOCO1, LES TIEN-SHANG LEE2 Affiliations: 1. Department of Management, Airlangga University Airlangga Surabaya, Indonesia; 2. Department of International Trade Graduate College of Management School of Business Kun Shan University, Taiwan Publisher: International Journal of Innovation Management Abstract The unlearning process in new product development (NPD) teams is a crucial one that leads to innovative products, but most related studies emphasise the variables embedded at the team level. This study focuses on how the characteristics of individuals, known as psychological capital (PsyCap), also contribute to the unlearning process. Moreover, this study argues that the effect of unlearning is moderated by the perceived diversity climate. To test the proposed hypotheses, 77 NPD team leaders and 298 members participated in the study. The results indicate that PsyCap has a positive influence on team unlearning and product innovation. This study also indicates that team strain negatively influences the unlearning process and product innovation. The positive effect of PsyCap on the unlearning process is strengthened when NPD teams perceive greater diversity climate, while the negative effect of team strain on the unlearning process and product innovation is weakened. Keywords: Psychological capital; team strain; team unlearning; perceived diversity climate; product innovation. Sources: https://www.worldscientific.com/doi/pdf/10.1142/S1363919617500323