Team capability beliefs over time: Distinguishing between team potency, team outcome efficacy, and team process efficacy

Abstract

Teams that have positive beliefs about their capability tend to perform more effectively. However, relatively little is known about the nature and change of different types of team capability beliefs. Team potency and team efficacy are two approaches to understanding team capability beliefs, but few studies have considered these beliefs simultaneously. We investigate their distinctiveness and relative predictive power. Additionally, we propose two types of team efficacy: team outcome efficacy and team process efficacy. In two longitudinal samples of executive MBA study teams (sample 1, N ¼ 213 individuals in 41 teams; sample 2, N ¼ 360 individuals in 89 teams), we showed that team potency, team outcome efficacy, and team process efficacy are factorially distinct and measure invariant at four time points over 7 months (except for high levels of team outcome efficacy for which factorial invariance emerged). We also show differential predictive validity. Team outcome efficacy was the strongest predictor of objective team performance, whereas team process efficacy was the best predictor of citizenship behaviours. Team potency predicted both outcomes, albeit more weakly. Collectively, the findings show the value of a more fine-grained approach to teams' capability beliefs, including a new validated measure of team process efficacy.

Improving corporate performance by enhancing team dynamics at the board level

“…To best observe the behaviors that represent this concept, we need to understand different aspects of board performance ranging from how directors perform as a team, to how well directors are able to respond to contextual and cultural differences (Earley and Mosakowski, 2004) that define each board environment (board culture), to the intervening processes or the dynamic of the relationships of the board directors (Minichilli et al, 2012) and how they impact resulting board-level outcomes of TP and TTP. TP is a measure of a team's 'collective perceived capability of working together to achieve tasks' (Collins and Parker, 2010). Collins and Parker (2010) focused on distinguishing the different drivers of team performance, examining elements of potency, processes and outcomes.…”

“…TP is a measure of a team's 'collective perceived capability of working together to achieve tasks' (Collins and Parker, 2010). Collins and Parker (2010) focused on distinguishing the different drivers of team performance, examining elements of potency, processes and outcomes. TP as identified, is an important board-level outcome, as teams with a 'strong belief in their capabilities set higher goals, develop strategies to achieve their goals, and persist in the face of setbacks' (Collins and Parker, 2010).…”

“…Collins and Parker (2010) focused on distinguishing the different drivers of team performance, examining elements of potency, processes and outcomes. TP as identified, is an important board-level outcome, as teams with a 'strong belief in their capabilities set higher goals, develop strategies to achieve their goals, and persist in the face of setbacks' (Collins and Parker, 2010). They also found that 'the broader bandwidth of team potency may be most predictive when a team does not obtain realistic feedback' (Collins and Parker, 2010), and given that boards are special teams that meet infrequently and receive little feedback, the use of potency was appropriate.…”

“…TP as identified, is an important board-level outcome, as teams with a 'strong belief in their capabilities set higher goals, develop strategies to achieve their goals, and persist in the face of setbacks' (Collins and Parker, 2010). They also found that 'the broader bandwidth of team potency may be most predictive when a team does not obtain realistic feedback' (Collins and Parker, 2010), and given that boards are special teams that meet infrequently and receive little feedback, the use of potency was appropriate. In a study that focused on the importance of TP compared with other antecedents of TTP, potency was the strongest predictor of team performance (Campion et al, 1993;Champion et al, 1996).…”

“…Measuring TP is important because 'teams with a strong belief in their capabilities set higher goals, develop strategies to achieve their goals, and persist in the face of setbacks' (Collins and Parker, 2010). Groups with high levels of potency are more likely to achieve success in team goals.…”