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

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 = 213 individuals in 41 teams; sample 2, N = 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.