How Team Efficacy Beliefs Impact Project Performance: An Empirical Investigation of Team Potency in Capital Projects in the Process Industries
Team efficacy beliefs show promise in enhancing
team performance. Using a model-based quantitative research design,
we investigated the antecedents and performance consequences of
generalized team efficacy (potency) in a sample of 56 capital projects
executed by 15 Fortune 500 companies in the process industries.
Empirical analysis of our field survey identified that generalized
team efficacy beliefs were positively associated with an objective
measure of project cost performance. Regression analysis revealed
that team competence, empowering leadership, and performance
feedback all predicted generalized team efficacy beliefs. Tests of
mediation revealed that generalized team efficacy fully mediated
between these three inputs and project cost performance.
[1] A. Bandura, "Exercise of human agency through collective efficacy,"
Current Directions in Psychological Science, vol. 9, no. 3, 2000, pp. 75-
78.
[2] D.H. Lindsley, J.E. Mathieu, T.S. Heffner, and D.J. Brass, "Team
efficacy, potency and performance: a longitudinal study of reciprocal
processes," Paper presented at the Annual Meeting of the Society of
Industrial-Organizational Psychology, Nashville, 1994.
[3] A. Bandura, "Collective efficacy," In A. Bandura, (Ed.), Self-efficacy:
The Exercise of Control. New York: Freeman, 1997, pp. 477-525.
[4] D.P. Baker and E. Salas, "Principles for measuring teamwork: a
summary and look toward the future," In M.T. Brannick, E. Salas, and
C. Prince (Eds.), Team Performance Assessment and Measurement:
Theory, Methods, and Applications. Mahwah, N.J.: Lawrence Erlbaum,
1997.
[5] S. M. Gully, J. M. Beaubien, K. A. Incalcaterra, and A. Joshi, "A metaanalytic
investigation of the relationship between team efficacy, potency,
and performance," Journal of Applied Psychology, vol. 87, no. 5, 2002,
pp. 819-832.
[6] T.D. Hecht, N.J. Allen, J.D. Klammer, and E.C. Kelly, "Group beliefs,
ability and performance: the potency of group potency," Group
Dynamics: Theory, Research and Practice, vol. 6, no. 2, 2002, pp. 143-
152.
[7] D.I. Jung and J.J. Sosik, "Group potency and collective efficacy," Group
and Organization Management, vol. 28, no. 3, 2003, pp. 336-391.
[8] C. B. Gibson, "Do they do what they believe they can? Group efficacy
and group effectiveness across tasks and cultures," Academy of
Management Journal, vol. 42, 1999, pp.138-152.
[9] M.A. Campion, G.J. Medsker, and A.C. Higgs, "Relationships between
work group characteristics and effectiveness: implications for designing
effective work groups," Personnel Psychology, vol. 46, 1993, pp. 823-
847.
[10] A.E. Akgun, H. Keskin, and J. Byrne, "Antecedents and consequences
of team potency in software development projects," Information and
Management, vol. 44, 2007, pp. 646-656.
[11] C. Scott-Young and D. Samson, "Project success and project team
management: Evidence from capital projects in the process industries,"
Journal of Operations Management, vol. 26, no. 6, 2008, pp. 749-766.
[12] J. Pfeffer, "Producing sustainable competitive advantage through the
effective management of people," In R. M. Steers, L. W. Porter, and G.
A. Bigley (Eds.), Motivation and Leadership at Work. McGraw Hill:
New York, 1996, pp. 600-616.
[13] L.R. Offermann and R.K. Spiros, "The science and practice of team
development: improving the link," Academy of Management Journal,
vol. 44, no. 2, 2001, pp. 376-392.
[14] S. M. Gully, J. M. Beaubien, A. Incalcaterra, and K. A. Joshi, "A metaanalytic
investigation of the relationship between team efficacy, potency,
and performance," Journal of Applied Psychology, vol. 87, no. 5, 2002,
pp. 819-832.
[15] R.A. Guzzo, P.R. Yost, R.J. Campbell, and G.P. Shea, "Potency in
groups: articulating a construct," British Journal of Social Psychology,
vol. 32, 1993, pp.87-106.
[16] S.M. Jex and P.D. Bliese, "Efficacy beliefs as a moderator of the impact
of work-related stressors: a multi-level study," Journal of Applied
Psychology, 1999, vol. 84, pp. 349-361.
[17] K.I. Zellars, W.A.Hochwarter, P.L. Perrewe, A.K. Miles, and C.
Kiewitz, "Beyond self-efficacy: Interactive effects of role conflict and
perceived collective efficacy," Journal of Managerial Issues, vol. 13,
2001, pp. 483-499.
[18] N. Sivasubramaniam, W.D. Murry, B.J. Avolio, and B.J. Jung, "A
longitudinal model of
[19] The effects of team leadership and group potency on group
performance," Group and Organizational Management, vol. 27, no.
2002, pp. 66-96.
[20] S.G. Kozlowski, S.M. Gully, E.Salas, and J.A. Cannon-Bowers, "Team
leadership and development: Theories, principles, and guidelines for
training leaders and teams," in M.M.Beyerlein, D.A. Johnson, and S.T.
Beyerlein (Eds.), Advances in Interdisciplinary Studies of Work Teams.
Greenwich, CT.: JAI, 1996, pp. 173-209.
[21] B. L. Kirkman and B. Rosen, "Beyond self-management: Antecedents
and consequences of team empowerment," Academy of Management
Journal, vol. 42, 1999, pp. 58-74.
[22] K.L. Kumpfer, C. Turner, R. Hopkins, and J. Librett, "Leadership and
team effectiveness in community coalitions for the prevention of alcohol
and drug abuse," Health Education Research, vol. 8, 1993, pp. 359-374.
[23] R. Hackman, In E.E. Lawler, A.M. Morhman, S. A. Morhman, G.E.,
Ledford, and T.G. Cummings, (Eds.). Doing Research that is Useful for
Theory and Practice. Lanham, MD.: Lexington, 1999.
[24] S.K. Parker, T.D.Wall, and J.L. Cordery, "Future work design research
and practice: towards an elaborated model of work design," Journal of
Occupational and Organizational Psychology, vol.74, no. 4, 2001, pp.
413-442.
[25] G.E. Prussia and A. J. Kinicki, "A motivational investigation of group
effectiveness using social-cognitive theory," Journal of Applied
Psychology, vol. 81, 1996, pp. 187-198.
[26] D.I. Jung and J.J. Sosik, "Effects of group characteristics on work group
performance: A longitudinal investigation," Group Dynamics: Theory,
Research and Practice, vol. 3, 1999, pp. 279-290.
[27] A. Bandura, Social Foundations of Thought and Action: a Social
Cognitive Theory. Englewood Cliffs, NJ.: Prentice-Hall, 1986.
[28] M.R. Barrick, G.L. Stewart, M.J. Neubert, and M.K. Mount, "Relating
member ability and personality to work-team processes and team
effectiveness," Journal of Applied Psychology, vol. 83, 1998, pp. 377-
91.
[29] B.L. Kirkman, P.E. Tesluk, and B. Rosen, "Assessing the incremental
validity of consensus ratings over aggregation of individual-level data in
predicting team effectiveness," Personnel Psychology, vol. 54, no. 3,
2001, pp. 645-667.
[30] D. Chan, "Functional relations among constructs in the same content
domain at different levels of analysis: a typology of composition
models," Journal of Applied Psychology, vol. 83, no. 2, 1998, pp. 234-
246.
[31] J.K. Pinto and D.P. Slevin, "Critical factors in successful project
implementation," IEEE Transactions of Engineering Management, vol.
34, no.1, 1987, pp. 22-27.
[32] E.W. Merrow, S.W. Chapel, and J.C. Worthing, A Review of Cost
Estimation in New Technologies, 1979. R-2481-DOE., RAND: Santa
Monica.
[33] E.W. Merrow and M.E. Yarossi, "Assessing project cost and schedule
risk," Transactions of the American Association of Cost Engineers,
1990, pp. H.6.1- H.6.7.
[34] E.W. Merrow and B.R. Schroeder, "Understanding costs and schedules
of hydroelectric projects," AACE Transactions. 35th Annual Meeting,
1991, pp. I.3.1-I.3.7.
[35] L.R. James, R.G. Demaree, and G. Wolf, "Estimating within-group
interrater reliability with and without response bias," Journal of Applied
Psychology, vol. 69, 1984, pp. 85-98.
[36] K.J. Preacher and A.F. Hayes, "SPPS and SAS procedures for estimating
indirect effects in simple mediation models," Behavior Research
Methods, Instruments and Computers, vol. 36, no. 2004, pp. 717-731.
[37] R. M. Baron and D.A. Kenny, "The moderator-mediator variable
distinction in social psychological research: conceptual, strategic, and
statistical considerations," Journal of Personality and Social Psychology,
vol. 51, 1986, pp. 1173-1182.
[38] D. P. MacKinnon and J.H. Dwyer, "Estimating mediated effects in
studies," Evaluation Review, Vol. 17, No. 2, 1993, pp. 144-158.
[39] M. E. Sobel, "Asymptotic intervals for indirect effects in structural
equations models," In S. Leinhart (Ed.), Sociological Methodology. San
Francisco: Jossey-Bass, 1982, pp. 290-312.
[1] A. Bandura, "Exercise of human agency through collective efficacy,"
Current Directions in Psychological Science, vol. 9, no. 3, 2000, pp. 75-
78.
[2] D.H. Lindsley, J.E. Mathieu, T.S. Heffner, and D.J. Brass, "Team
efficacy, potency and performance: a longitudinal study of reciprocal
processes," Paper presented at the Annual Meeting of the Society of
Industrial-Organizational Psychology, Nashville, 1994.
[3] A. Bandura, "Collective efficacy," In A. Bandura, (Ed.), Self-efficacy:
The Exercise of Control. New York: Freeman, 1997, pp. 477-525.
[4] D.P. Baker and E. Salas, "Principles for measuring teamwork: a
summary and look toward the future," In M.T. Brannick, E. Salas, and
C. Prince (Eds.), Team Performance Assessment and Measurement:
Theory, Methods, and Applications. Mahwah, N.J.: Lawrence Erlbaum,
1997.
[5] S. M. Gully, J. M. Beaubien, K. A. Incalcaterra, and A. Joshi, "A metaanalytic
investigation of the relationship between team efficacy, potency,
and performance," Journal of Applied Psychology, vol. 87, no. 5, 2002,
pp. 819-832.
[6] T.D. Hecht, N.J. Allen, J.D. Klammer, and E.C. Kelly, "Group beliefs,
ability and performance: the potency of group potency," Group
Dynamics: Theory, Research and Practice, vol. 6, no. 2, 2002, pp. 143-
152.
[7] D.I. Jung and J.J. Sosik, "Group potency and collective efficacy," Group
and Organization Management, vol. 28, no. 3, 2003, pp. 336-391.
[8] C. B. Gibson, "Do they do what they believe they can? Group efficacy
and group effectiveness across tasks and cultures," Academy of
Management Journal, vol. 42, 1999, pp.138-152.
[9] M.A. Campion, G.J. Medsker, and A.C. Higgs, "Relationships between
work group characteristics and effectiveness: implications for designing
effective work groups," Personnel Psychology, vol. 46, 1993, pp. 823-
847.
[10] A.E. Akgun, H. Keskin, and J. Byrne, "Antecedents and consequences
of team potency in software development projects," Information and
Management, vol. 44, 2007, pp. 646-656.
[11] C. Scott-Young and D. Samson, "Project success and project team
management: Evidence from capital projects in the process industries,"
Journal of Operations Management, vol. 26, no. 6, 2008, pp. 749-766.
[12] J. Pfeffer, "Producing sustainable competitive advantage through the
effective management of people," In R. M. Steers, L. W. Porter, and G.
A. Bigley (Eds.), Motivation and Leadership at Work. McGraw Hill:
New York, 1996, pp. 600-616.
[13] L.R. Offermann and R.K. Spiros, "The science and practice of team
development: improving the link," Academy of Management Journal,
vol. 44, no. 2, 2001, pp. 376-392.
[14] S. M. Gully, J. M. Beaubien, A. Incalcaterra, and K. A. Joshi, "A metaanalytic
investigation of the relationship between team efficacy, potency,
and performance," Journal of Applied Psychology, vol. 87, no. 5, 2002,
pp. 819-832.
[15] R.A. Guzzo, P.R. Yost, R.J. Campbell, and G.P. Shea, "Potency in
groups: articulating a construct," British Journal of Social Psychology,
vol. 32, 1993, pp.87-106.
[16] S.M. Jex and P.D. Bliese, "Efficacy beliefs as a moderator of the impact
of work-related stressors: a multi-level study," Journal of Applied
Psychology, 1999, vol. 84, pp. 349-361.
[17] K.I. Zellars, W.A.Hochwarter, P.L. Perrewe, A.K. Miles, and C.
Kiewitz, "Beyond self-efficacy: Interactive effects of role conflict and
perceived collective efficacy," Journal of Managerial Issues, vol. 13,
2001, pp. 483-499.
[18] N. Sivasubramaniam, W.D. Murry, B.J. Avolio, and B.J. Jung, "A
longitudinal model of
[19] The effects of team leadership and group potency on group
performance," Group and Organizational Management, vol. 27, no.
2002, pp. 66-96.
[20] S.G. Kozlowski, S.M. Gully, E.Salas, and J.A. Cannon-Bowers, "Team
leadership and development: Theories, principles, and guidelines for
training leaders and teams," in M.M.Beyerlein, D.A. Johnson, and S.T.
Beyerlein (Eds.), Advances in Interdisciplinary Studies of Work Teams.
Greenwich, CT.: JAI, 1996, pp. 173-209.
[21] B. L. Kirkman and B. Rosen, "Beyond self-management: Antecedents
and consequences of team empowerment," Academy of Management
Journal, vol. 42, 1999, pp. 58-74.
[22] K.L. Kumpfer, C. Turner, R. Hopkins, and J. Librett, "Leadership and
team effectiveness in community coalitions for the prevention of alcohol
and drug abuse," Health Education Research, vol. 8, 1993, pp. 359-374.
[23] R. Hackman, In E.E. Lawler, A.M. Morhman, S. A. Morhman, G.E.,
Ledford, and T.G. Cummings, (Eds.). Doing Research that is Useful for
Theory and Practice. Lanham, MD.: Lexington, 1999.
[24] S.K. Parker, T.D.Wall, and J.L. Cordery, "Future work design research
and practice: towards an elaborated model of work design," Journal of
Occupational and Organizational Psychology, vol.74, no. 4, 2001, pp.
413-442.
[25] G.E. Prussia and A. J. Kinicki, "A motivational investigation of group
effectiveness using social-cognitive theory," Journal of Applied
Psychology, vol. 81, 1996, pp. 187-198.
[26] D.I. Jung and J.J. Sosik, "Effects of group characteristics on work group
performance: A longitudinal investigation," Group Dynamics: Theory,
Research and Practice, vol. 3, 1999, pp. 279-290.
[27] A. Bandura, Social Foundations of Thought and Action: a Social
Cognitive Theory. Englewood Cliffs, NJ.: Prentice-Hall, 1986.
[28] M.R. Barrick, G.L. Stewart, M.J. Neubert, and M.K. Mount, "Relating
member ability and personality to work-team processes and team
effectiveness," Journal of Applied Psychology, vol. 83, 1998, pp. 377-
91.
[29] B.L. Kirkman, P.E. Tesluk, and B. Rosen, "Assessing the incremental
validity of consensus ratings over aggregation of individual-level data in
predicting team effectiveness," Personnel Psychology, vol. 54, no. 3,
2001, pp. 645-667.
[30] D. Chan, "Functional relations among constructs in the same content
domain at different levels of analysis: a typology of composition
models," Journal of Applied Psychology, vol. 83, no. 2, 1998, pp. 234-
246.
[31] J.K. Pinto and D.P. Slevin, "Critical factors in successful project
implementation," IEEE Transactions of Engineering Management, vol.
34, no.1, 1987, pp. 22-27.
[32] E.W. Merrow, S.W. Chapel, and J.C. Worthing, A Review of Cost
Estimation in New Technologies, 1979. R-2481-DOE., RAND: Santa
Monica.
[33] E.W. Merrow and M.E. Yarossi, "Assessing project cost and schedule
risk," Transactions of the American Association of Cost Engineers,
1990, pp. H.6.1- H.6.7.
[34] E.W. Merrow and B.R. Schroeder, "Understanding costs and schedules
of hydroelectric projects," AACE Transactions. 35th Annual Meeting,
1991, pp. I.3.1-I.3.7.
[35] L.R. James, R.G. Demaree, and G. Wolf, "Estimating within-group
interrater reliability with and without response bias," Journal of Applied
Psychology, vol. 69, 1984, pp. 85-98.
[36] K.J. Preacher and A.F. Hayes, "SPPS and SAS procedures for estimating
indirect effects in simple mediation models," Behavior Research
Methods, Instruments and Computers, vol. 36, no. 2004, pp. 717-731.
[37] R. M. Baron and D.A. Kenny, "The moderator-mediator variable
distinction in social psychological research: conceptual, strategic, and
statistical considerations," Journal of Personality and Social Psychology,
vol. 51, 1986, pp. 1173-1182.
[38] D. P. MacKinnon and J.H. Dwyer, "Estimating mediated effects in
studies," Evaluation Review, Vol. 17, No. 2, 1993, pp. 144-158.
[39] M. E. Sobel, "Asymptotic intervals for indirect effects in structural
equations models," In S. Leinhart (Ed.), Sociological Methodology. San
Francisco: Jossey-Bass, 1982, pp. 290-312.
@article{"International Journal of Business, Human and Social Sciences:60024", author = "C. Scott-Young and D. Samson", title = "How Team Efficacy Beliefs Impact Project Performance: An Empirical Investigation of Team Potency in Capital Projects in the Process Industries", abstract = "Team efficacy beliefs show promise in enhancing
team performance. Using a model-based quantitative research design,
we investigated the antecedents and performance consequences of
generalized team efficacy (potency) in a sample of 56 capital projects
executed by 15 Fortune 500 companies in the process industries.
Empirical analysis of our field survey identified that generalized
team efficacy beliefs were positively associated with an objective
measure of project cost performance. Regression analysis revealed
that team competence, empowering leadership, and performance
feedback all predicted generalized team efficacy beliefs. Tests of
mediation revealed that generalized team efficacy fully mediated
between these three inputs and project cost performance.", keywords = "Team efficacy, Potency, Leadership, Feedback,Project cost.", volume = "3", number = "6", pages = "1048-6", }
