Team psychological capital and process improvement: an interactionist perspective

Abstract

Purpose The purpose of this study is to examine the relationship between team psychological capital (PsyCap) and team process improvement (TPI) by focusing on the mediating role of team self-managing behaviors (TSMBs) and the moderating effect of the team reward system. Design/methodology/approach Data were collected from 514 members and their immediate superiors nested in 135 action teams working for a Canadian public safety organization. Hypotheses were tested using a path analytic procedure. Findings Team PsyCap was positively related to TPI, and this relationship was mediated by TSMBs. In addition, the team reward system positively moderated the first stage of this relationship. Research limitations/implications This study highlights the important role that motivational factors play in the effectiveness of action teams. Specifically, the present study reveals that the psychological resources of action teams interact with the level of recognition and reward they receive to predict members’ engagement in self-managing behaviors and in improvement processes. Practical implications Findings suggest that to promote the capacity for process improvement of actions teams, managers should focus on their positive psychological resources, their capacity to self-manage and on the level of recognition and reward they receive. Originality/value Considering the dynamic and complex environments within which action teams operate, the finding that team PsyCap promotes their optimal functioning is particularly noteworthy. Furthermore, this study clarifies why and when team PsyCap enhances TPI.