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.