Interdisciplinary teams are employed with the expectation of bringing diverse expertise and generating innovations. The literature, however, shows that knowledge differences in the context deter team members from sharing and integrating knowledge. It is essential to embody a knowledge-sharing climate and interdisciplinary knowledge integration, both of which are critical to facilitating innovation. By drawing upon social capital theory, this study presents a knowledge sharing climate. This study also shows how interdisciplinary knowledge integration mediates between functional diversity and innovation and between a knowledge-sharing climate and innovation. Data collected from 202 individuals from interdisciplinary project teams were used to test the research model. Empirical results indicate that innovation is significantly affected by interdisciplinary knowledge integration and openness. Functional diversity and trusting relationships do not have direct impacts on innovation but are mediated by interdisciplinary knowledge integration. The findings have critical theoretical and practical implications which are discussed in the paper.
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