2022
Working Paper
HBS Working Paper Series

Exploring the Relationship between Team Diversity, Psychological Safety and Team Performance: Evidence from Pharmaceutical Drug Development

Format:Print
| Language:English
| Pages:13

Abstract

Breakthrough performance in teams requires pooling diverse perspectives and expertise. To realize the potential of diversity, communicating and translating across differences is essential. However, left to their own devices, diverse teams tend to underperform, in part because team members avoid interpersonal risks. We propose a model in which a negative relationship between team member diversity and team performance is moderated by psychological safety. We argue that when team members with diverse backgrounds must work together to accomplish challenging goals, psychological safety may help them overcome barriers to communication created by their differences. Although psychological safety has intrinsic value for all employees because it allows them to voice ideas, concerns, and questions at work, it may be especially valuable for diverse teams. We report on a study in which we find support for our model and conclude that psychological safety can help to unlock the potential of diverse teams. We also offer ideas about concrete tactics for building psychological safety in diverse teams.