Identifying Opportunities from Failure: The Role of Psychological Safety and Voice Behavior

Abstract

Abstract:

Existing studies on antecedents of opportunity identification focus the traits and behaviors of entrepreneurs, thus understate the critical role of contextual characteristics and collective cognition of entrepreneurial team. To address these gaps, we investigate the contingent effect of prior project failure experience (PPFE) of new product development (NPD) team leader on opportunity identification from the last NPD project failure. Using hierarchy regression, we examine the moderating effects of psychological safety of NPD team and voice behavior of NPD members on the relationship between PPFE and opportunities identified from the last NPD project failure, as well as the effect of psychological safety on voice behavior. Using bootstrapping approach, we examine the mediating effect of psychological safety on the moderating effect of voice behavior. The result shows that psychological safety positively moderates PPFE-opportunity identification relationship, and voice behavior partially mediates the moderating effect of psychological safety. Our results suggest that opportunities identified from project failure are contingent on organizational climate and collective sensemaking of project failure by NPD team.

Key words: new product development, project failure, prior project failure experience, opportunity identification, psychological safety, voice behavior

Yu Xiaoyu, Hu Zhitian, Chen Yi, Tao Xiangming, Du Xuxia. Identifying Opportunities from Failure: The Role of Psychological Safety and Voice Behavior[J]. , 2016, 28(7): 154-164.

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