Time is running out: How design thinking shapes team innovation under time constraints

Design thinking as a problem-solving framework has garnered significant attention for its reliance on abductive reasoning and human-centeredness. Existing literature has underscored the importance of these elements in fostering an array of organizational outcomes and enhancing the overall stakeholder satisfaction. However, less is known about how these reasoning approaches influence team innovation quality, particularly in time-constrained settings. The present study aims to fill this gap by focusing on team dynamics and examining the effects of abductive reasoning and human-centeredness on team innovation quality. We conduct an empirical analysis involving seven teams, each undertaking multiple innovation decisions under time constraints in a laboratory game context. Our results suggest an interplay between the reasoning approaches and team innovation quality. Specifically, teams that relied more on abductive reasoning in time-constrained tasks tended to make lower-quality decisions, while teams that were highly human-centered produced decisions of higher quality. Importantly, team size emerged as a key moderating variable. Larger teams were found to exert an even more negative impact of abductive reasoning on team innovation quality while amplifying the positive effects of human-centeredness.