Team development and performance in construction design teams: an assessment of a hierarchical model with mediating effect of compensation

A high-performance construction workplace invests in its human resources and facilitates their technical and innovation skills through team development. Though team development has been explored in many studies, to date, little research has disentangled how team development and compensation methods enhance team performance in construction companies. Accordingly, team development as a hierarchical, reflective construct, incorporating six associated components was extended and the variables of the model in a nomological network analysed using partial least squares (PLS). As a result, with the help of PLS path modelling, a hierarchical team development construct with the mediating effects of compensation on the relationship between team development and team performance was developed. The research analysis was completed on a sample population of 128 construction design teams and the results lead to the development of a model that shows team development has a significant direct and indirect impact on team performance. The results also confirm the mediating role of group compensation on the relationship between team development and team performance. In general, it is suggested that the design teams achieved better performance when the leaders adapted team compensation methods consistent with the team development practices.