Institutional context and agile team innovation: A sensemaking approach to collective knowledge creation

This study offers a phenomenological account of the institutional context's role in Agile teams' knowledge work. Drawing from 44 semi-structured interviews and naturalistic observations of Agile teams in the Telco sector, the study emphasizes sensemaking activities through which team members navigate daily situations, revealing internal mechanisms underlying knowledge management and sensemaking processes within Agile teams. The findings emphasize the value-driven character of knowledge creation and highlight distinctive modes of knowledge creation and utilization within teams. The study also uncovers the role of managers in leveraging high-level learning beyond project boundaries, illustrating the tension between teams' priorities and managers' suggested actions. Overall, we contribute to a deeper understanding of the relationship between Agile practices, team environment, and product innovation performance, offering valuable insights for organizations seeking to maximize innovation potential while implementing Agile methodologies.