Discussion
This research investigates crisis management in NPD and how team communication bridges the link between perceived crisis and new product performance. Two types of team communication, namely formal and informal, are distinguished. It is suggested that they are both mediators and moderators in the crisis-performance relationship. With empirical testing in high-tech industries, findings indicate that crisis perception positively influences new product performance directly and indirectly (via formal communication). Moreover, formal communication negatively, but informal communication positively, moderates the relationship between crisis perception and new product performance. While a positive mediating effect of informal communication is hypothesized, the result is insignificant. This is may be because informal communication at times can generate unnecessary rumors, and rumors do not facilitate reduction in anxiety among team members. When rumors start to spread, the negative effect may offset the facilitating effect of informal communication. This may be an alternative explanation for the insignificant mediating effect of informal communication.