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Although scholars find that the transactive memory systems can improve new product performance, few studies have empirically examined how managers can induce a transactive memory system in new product development teams with a set of systematic management practices. Based on the theoretical argument about human resource system in the strategic human resource management literature, this study proposes that implementing a set of coherent human resource management practices with workers in new product development teams can induce a transactive memory system in the team. Following previous scholars, this study calls this set of coherent human resource management practices as the high commitment work system. With survey data collected from 336 new product development engineers of 73 new product development teams in 73 firms, this study finds that transactive memory system mediates the positive relationship between the high commitment work system implemented with workers in new product development teams and new product performance.

Past research finds that innovation and new product (NP) performance are crucial for firm success (Gupta and Woodside, 2006, Gupta et al., 2009, Tseng and Wu, 2007, Wu, 2007, Wu, 2010 and Wu and Wang, 2007). A team process found conducive to new product performance is the transactive memory system (TMS) (Akgun et al., 2006 and Akgun et al., 2005). Transactive memory (TM) involves two components: (1) a set of organized knowledge contained in the individual memory of team members, and (2) a set of transactive processes that occur among team members (Wegner, Giuliano, & Hertel, 1985). The transactive memory system (TMS) refers to a set of individual memory systems in combination with the communication that takes place between individuals (Wegner, 1986). As such, TMS refers to a shared system that people in relationships develop for encoding, storing, and retrieving information about different substantive domains (Hollingshead, 1998). TMS exists when team members actively use their transactive memories to draw on and combine others' knowledge to perform a joint task (Lewis, 2003, p. 588). Much research has examined TM, TMS, and TMS' beneficial effect on performance (Peltokorpi, 2004, Peltokorpi, 2008, Peltokorpi, 2012, Peltokorpi and Manka, 2008, Rau, 2005, Rau, 2006 and Ren and Argote, 2011). One line of investigation in the TMS research examines how TMS can promote NP success (Akgun et al., 2006, Akgun et al., 2005 and Dayan and Elbanna, 2011). Although scholars have verified TMS' beneficial effect with NP performance (Akgun et al., 2005 and Akgun et al., 2006), comparatively fewer studies have empirically demonstrated how managers can bring about a TMS in new product development (NPD) teams to promote NP success. This study complements the research into TMS and NP performance by investigating how managers can implement a set of coherent human resource (HR) management practices with workers in NPD teams to develop a TMS in the team in enhancing NP performance. Following previous scholars (Collins & Smith, 2006), this study calls this set of interrelated HR practices the high commitment work system (HCWS). This study draws on the HR system theory (Lepak, Liao, Chung, & Harden, 2006) in the strategic human resource management literature to develop hypotheses on the relationship between HCWS and TMS. The HR system theory argues that implementing HCWS with employees can nurture workers' abilities to perform, provide workers with the opportunities to perform, and adequately motivate workers to perform according to the company's objectives (Lepak et al., 2006, p. 231). The HR system theory also argues that HR practices first affect individual worker's behaviors and then aggregates into better performance of the collective (Lepak et al., 2006, p. 231). Based on the HR system theory, this study proposes that implementing HCWS with NPD personnel in NPD teams can nurture workers' specialized knowledge, help them know of the specialized knowledge of their teammates, and motivate them to utilize the knowledge of their teammates to accomplish the team assignments. Since TMS exists when team members actively use their transactive memories in combination with others' knowledge to perform a joint task (Lewis, 2003, p. 588), this study argues that implementing HCWS with workers in NPD teams can nurture a TMS in the team to help the team attain the NP's developmental goals. To empirically examine the authors' propositions, this study surveys NPD team members in Taiwanese electronic product manufacturing companies. These Taiwanese firms face keen competition in their operating environment so they often assemble cross functional teams to develop new products to cater to the changing demands of their clients (Chiang & Hung, 2010). With survey data collected from different persons with time lag, this study finds that team aggregated HCWS is positively related to team-level TMS and that the team TMS is positively related to the performance of the NP the team develops. This study possesses significance to the literature regarding TMS and new product development. Previous authors have examined several antecedents of TMS, such as communication (Peltokorpi & Manka, 2008), interpersonal trust (Akgun et al., 2005), and team stability (Lewis, Belliveau, Herndon, & Keller, 2007; see Ren & Argote, 2011 for a review). However, mechanisms like trust and communication suggest that extant scholarship has paid more attention on exploring how TMS may be formed through informal interactions among team members than by managing team workers with a set of explicit, systematic management practices. Based on the HR system theory (Lepak et al., 2006), this study argues that the company can implement a set of systematic HR practices with workers in NPD teams to nurture team members' specialized knowledge, provide them with the opportunities to learn of the expertise of their colleagues, and motivate them to cooperate with their teammates and use others' expertise to accomplish a joint task. In this way, this study reminds scholars of a TMS antecedent that has so far been neglected in the TMS literature. This study also possesses meaning to the literature about new product development. Although previous scholars have validated TMS' beneficial effect with NP success (Akgun et al., 2006 and Akgun et al., 2005), this study extends the research into TMS and NP development by demonstrating a way for managers to develop a TMS in NPD teams to boost NP performance. In this way, this study can offer useful advice to managers of NPD teams. The following sections discuss the relevant theories as well as derive hypotheses. The authors then discuss the research method and report the findings. Implications of the results are discussed in the final section.

Despite its limitations, this study remains among the first in the TMS and the product innovation literature to examine how HR system may enhance NPD team performance through the effect of forming a TMS in work teams. Findings from this study remind scholars of a TMS antecedent not yet examined in extant TMS literature. Also, this study extends previous NPD research by indicating a way for managers to induce a TMS in NPD teams with HR practices to pursue NP success. In this way, this study complements the TMS and the NPD literature in a meaningful way.