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Fostering Psychological Safety for Team Effectiveness in Family Businesses: Insights From Royal Savoy Hotel
Abstract
This chapter examines the relationship between psychological safety and team effectiveness. Psychological safety is the perception and belief held by members of a team that interpersonal risk-taking is supported and encouraged in the workplace. A literature review was conducted to establish the relationships between psychological safety and employee engagement, satisfaction, performance, as well as team effectiveness in family businesses. The results showed that teams with a prominent level of psychological safety were significantly more effective than teams with a low level of psychological safety. Psychological safety has a significant effect on teams' performance and business effectiveness. This research holds that psychological safety is essential for team effectiveness and should be considered in building effective teams for innovative performance and sustainable competitive advantage in family businesses.
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