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Transcript of Promoting group potency in project teams: The importance of group identification
Journal of Organizational Behavior, J. Organiz. Behav. 32, 1147–1162 (2011)
Published online 2 February 2011 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/job.741
*Correspondence to:E-mail: [email protected]
Copyright # 2011
Promoting group potency in project teams: Theimportance of group identification
CYNTHIA LEE1,2*, JIING-LIH FARH3 AND ZHI-JUN CHEN3
1College of Business Administration, Northeastern University, Boston, Massachusetts, U.S.A.2Department of Management & Marketing, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong3Department of Management, School of Business Hong Kong University of Science and Technology, Clear Water Bay,Kowloon, Hong Kong
Summary We examined the antecedents and consequences of group potency in 71 multinational project teams in theGreater China region. We extended the theoretical basis of group potency by employing group identificationtheory. Results showed that group identification was one of the key factors in developing group potency.Further, fostering the acceptance of group goals that are interdependent was important for increasing groupidentification. We discuss the implications of our findings for future research. Copyright# 2011 John Wiley& Sons, Ltd.
Keywords: group potency; group identification; group performance
Introduction
Research on groups and work teams has become very popular across the world over the past decade. Existing
explanations of group performance, however, are incomplete and tend to neglect mechanisms inherent in the groups
themselves as important determinants of group effectiveness (Cohen, Ledford, & Spreitzer, 1996; Gully, 2000;
Kozlowski & Ilgen, 2006). As reviewed and summarized by Mathieu, Maynard, Rapp, and Gilson (2008), the
research on teams has made substantial progress especially in the areas of group potency, among others. They note
that, as shown by Gully, Incalcaterra, Joshi, and Beaubien’s meta-analysis (2002), although the positive relationships
between group potency with outcomes are fairly consistent and moderate, particularly for highly interdependent
teams, future work should also consider the antecedents of group potency or the group’s collective belief
in its capability to perform well in general or to perform multiple tasks in complex environments (Gibson, Randel,
& Earley, 2000; Gully et al., 2002, Guzzo, Yost, Campbell, & Shea, 1993; Shea & Guzzo, 1987). Group potency is
a social-psychological factor that is motivational in nature and an important antecedent of group outcomes (Gully
et al., 2002; Hirschfeld, Jordan, Field, Giles, & Armenakis, 2005; Lester, Meglino, & Korsgaard, 2002; Stajkovic,
Lee, & Nyberg, 2009).
Although intrateam coordination and greater cooperation among team members as well as transformational
and empowerment leadership have been found to be beneficial when teams perform creative and complex work
(Stewart, 2006), the processes by which such effects relate to team performance should be examined. First, the group
potency literature has not addressed how leaders promote group’s shared perceptions or group identification and
collective beliefs about their capability. As suggested by Kozlowski and Bell (2003) that to study team phenomenon,
research should explicitly target at the team level as in our study. The processes we examine include team members’
Cynthia Lee, College of Business Administration, Northeastern University, Boston, MA 02115, U.S.A.u
John Wiley & Sons, Ltd.Received 17 March 2009
Revised 19 November 2010, Accepted 23 November 2010
1148 C. LEE ET AL.
identification with their own groups and members’ group potency. We argue that in order to develop identification
with one’s own group, a leader can foster acceptance of group goals and create goal interdependence. Second,
although research has examined the mediating role of group potency on leadership style and group performance
(Guzzo et al., 1993; Lester et al., 2002; Sivasubramaniam, Murry, Avolio, & Jung, 2002), we seek to explain
why group identification mediates the relationship between leader’s role in fostering group goals and goal
interdependence on group potency. Third, although Gully et al. (2002) has demonstrated the positive association
between group potency and performance, we know less about how best to promote group potency. We propose
that leaders can increase the group’s identification and that group identification enhances group potency. We thus
suggest that group identification is central to developing group potency. Our use of group identification contributes to
the theoretical grounding for studying group potency and aims to address the above weaknesses in group potency
research.
As suggested by Hirschfeld et al. (2005), the role of group potency in team effectiveness is supported by the tenets
of social-cognitive theory such that shared forethought generates action, collective experiences and results (Bandura,
1997) as in Lester et al.’s (2002) study. The primary objective of our study is to extend the theoretical basis of group
potency and examine its antecedents. We suggest that, first, group potency beliefs can be strengthened by having
group/team identification. Team identification is the process by which individual teammembers perceive themselves
in terms of the values, goals, attitudes, and behavior they share with other team members (Janssen & Huang, 2008).
Since collective beliefs emerge from members confronting collective concerns or task-related issues, collective
identification develops from the extent to which these common concerns of team goals and norms are acknowledged
and enacted. When individuals identify with a group, they base their self-esteem partly on their group membership
and partly on the group’s successes or failures (Mael & Ashforth, 1992). Secondly, since team identification
encourages individual members to contribute to the collective by acting in team-typical ways (Janssen & Huang,
2008), the sense of team identification or oneness motivates individual team members to believe in each other’s
capability to perform multiple tasks. Specifically, our study extends previous theorizing by suggesting that
team identification increases group potency since identification with the group or team raises the group’s belief
that they have the capability to perform well in various contexts. We further suggest that team identification mediates
the relationship between leader’s role in fostering acceptance of group goals and goal interdependence on group
potency and team performance. This is because the leader’s role in mobilizing people to achieve collective goals
tends to create greater identification with work unit members (Hogg, 2001).
In sum, we examine our hypothesized model shown in Figure 1 where group identification mediates the
effects of leader’s fostering acceptance of group goals and goal interdependence on group potency. Further group
potency also mediates the effects of group identification on group performance. While many researchers provide
different definitions for groups and teams, as noted by Gully (2000), many of these distinctions are arbitrary and
much overlap exists among the various definitions. We use the term work teams and groups interchangeably in our
paper. We seek to identify the available social information cues and forms of communication that facilitate team
member identification.
Figure 1. Hypothesized model
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
PROMOTING GROUP POTENCY 1149
Group Identification
In a group setting, a source of group confidence or potency may come from members’ identification with their
own groups. Group identification is the ‘‘emotional significance that members of a given group attach to their
membership in that group’’ (Van de Vegt & Bunderson, 2005). Ashforth and Mael (1989) stated that to identify
with a group, an individual needs to perceive him- or herself as psychologically intertwined with the fate of the
group and to see him- or herself as personally experiencing the successes and failures of the group. In other
words, the interpersonal relationships of the team members should be satisfying (Gaertner, Mann, Dovidio,
Murrell, & Pomare, 1990). Further, the individual should have the desire to appease, emulate, or vicariously gain
the qualities of the others and, thus, define the self in terms of the people in the ‘‘group.’’ Work context that
provides structure, norms, and guidance conducive to congruent expectancies regarding appropriate behaviors
foster organization-related identities (Thatcher & Zhu, 2006). Similarly, developing group norms is one way
to reinforce group identification since social identification theory suggests that shared goals, interpersonal
interaction, or common history may affect the extent to which individuals identify with a group (Ashforth
& Mael, 1989).
In order to foster group identification, we suggest that group leaders should develop group goals
and collaborations so that members can integrate their personal and social identities. Goal interdependence can
also be used to signal that the group members’ fates are intertwined, increasing the likelihood that members
understand each other, develop norms, and define themselves with people in the group. Strong group
identification can thus increase members’ confidence in each other’s ability to perform. Further, group
identification can increase the likelihood that members will perform citizenship behaviors that help other team
members but are not required by the task (Janssen & Huang, 2008). Figure 1 presents our integrative model that is
further discussed below.
Antecedents of Group Identification
How do we enhance group identification or create the sense that membership in a team is an emotionally significant
aspect of one’s identity? Social identity theory suggests that group members will exhibit favorable bias toward
similar others or toward their in-group members, and they will view themselves as being in conflict with out-group or
dissimilar others (Turner & Haslam, 2001). Ways to enhance the team’s emotional identification are by fostering
acceptance of group goals, creating goal interdependencies and communicating with their team members.
Others suggest that these antecedents of group identification represent the abilities of charismatic leaders who can
be effective in articulating their vision, energizing and inspiring others, and generating commitment from their
followers to achieve their stated vision and goals (Conger & Kanungo, 1987, 1998; Lester et al., 2002). Additionally,
such leaders can often boost the confidence of their followers and develop in them a belief that they can succeed.
These leaders are often successful in connecting with followers’ commitment to the group’s mission or goals.
Consequently, the followers express their self-concepts by acting for the sake of the group (Shamir, House, &Arthur,
1993). Thus, along with team member communication, the followers’ perception that they have a common goal
with their group and that their goals are intertwined or interdependent can increase identification with the group.
As a result, the increased group identification enhances the followers’ willingness to contribute to the group’s goals
and objectives.
We suggest that the perception of a leader in fostering acceptance of group goals and creating goal
interdependence is related to group identification. Podsakoff, MacKenzie, and Ahearne (1997) note that when
leaders foster the acceptance of group goals and succeed in getting group members to work cooperatively, a
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
1150 C. LEE ET AL.
more positive identification will develop between the group members. Thus, it is possible that teams with leaders
who can foster the acceptance of group goals can help create a sense of togetherness or group identification.
Therefore, we predict that
H1: Fostering collaboration and acceptance of group goals have a direct positive effect on group identification.
Additionally, we suggest that although fostering acceptance of group goals is important in generating a sense of group
identity, perceived goal interdependence, or the fact that the goal attainment of one team member is influenced by the
goal attainment of another, is needed for team members to work cooperatively to attain the group’s shared goals.
Perceived goal interdependence is defined as the extent towhich an individual teammember believes that his or her goals
can be achieved only when the goals of other team members are also met (Weldon & Weingart, 1993). Weldon and
Weingart (1993) argued that goal interdependence improves performance of an interdependent task because goal
interdependence increases team member collaboration. According to Van der Vegt and Janssen (2003), team members
working on tasks with high levels of task and goal interdependences have high-quality social processing, extensive
mutual learning, use the knowledge and skills of interdependent members to solve problems, and be receptive to
information and suggestions from interdependent others. We argue that the high-quality social processes from goal
interdependencewill likely increase group identification as group interactions enhance the team’s emotional attachment.
H2: Goal interdependence has a direct positive effect on group identification.
Group Identification and Group Potency
Collective identification has its roots in social identity theory. According to social identity theory, a person’s self-
concept is comprised of his/her own abilities, interests and social identity where people characterize themselves
into various social groups. Such characterization enables people to locate themselves and others within particular
social groups. One consequence of social identification relates to team formation including positive evaluation of
the group (Turner, 1982, 1984). The perception of belonging to a group allows people to vicariously partake
in accomplishments beyond their powers (Katz & Kahn, 1978). Social identity theory suggests that members
work to benefit their in-group status because their positive self-regard is linked to the group’s success. It has
been suggested that when people feel an emotional attachment with their group, share the same fate, and see their
self-images reflected in group membership, they have more positive attitudes about the group (Ashforth & Mael,
1989; Chattopadhyay, 1999; Tsui, Egan, & O’Reilly, 1992).
As argued by Ashforth and Mael (1989), social identification has motivational and behavioral consequences.
Specifically, a high level of identification leads the individual to engage in behaviors that are congruent with the group’s
identity and that express that identity. As team members interact and develop special relationships, the team forms a
persona of its own. When team members identify strongly with the group and the group goals, they tend to cooperate
with each other better. Research by Tjosvold and associates (1998, 2000, 2004) has shown that cooperative teams
perform better than uncooperative teams. Thus, members of cooperative teams should have greater confidence in their
team’s ability to accomplish the group goals well (group potency). Subsequently, teammembers will work hard to build
their team’s sense of potency since they are collaborating on a common and intertwined goal. Collaborating and
fostering the acceptance of common group goals can reinforce the team’s shared identity. Given the motivational and
behavioral effects of social identification, members’ identification with the group is likely to be taken into account by
group members when they evaluate the group’s potency. Therefore, a high level of identification among group
members is likely to increase its sense of potency (Kark, Shamir, & Chen, 2003; Shamir, Zakay, Breinin, & Popper,
2000). We further argue that having common and interdependent goals may not necessarily lead to high group
potency unless the group members identify with each other. We, therefore, predict that
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
H3: Group identification has a direct positive effect on group potency.
H4: Group identification mediates the relationships among goal interdependence, fostering acceptance of group
goals on group potency.
PROMOTING GROUP POTENCY 1151
Consequences of Group Potency
Prior research suggests that a general belief in group potency relates positively to team effectiveness (Guzzo et al.,
1993). Just like group efficacy, which signals what a group thinks it can do on a specific task (Gibson, 1999), group
potency should signal what a group thinks it can do across tasks and situations. Guzzo et al. (1991) reported that
potency was positively related to measures of service to others inside an organization and of service to customers.
Shea and Guzzo (1987) found that potency was positively correlated with team customer service effectiveness.
Similarly, de Jong, Ruyter, andWetzels (2005), in a study of 60 self-managed teams in retail banking, found a significant
positive association between group potency and customer-perceived service quality. Campion, Medsker, and Higgs
(1993) found positive correlations between potency and group productivity, satisfaction, and managerial judgments of
effectiveness in a large financial service company. Lee, Tinsley, and Bobko (2002) found that group potency was related
to task performance even when past performance was controlled. As revealed by Gully et al. (2002), the higher the
potency, the more positive the collective outcomes. In replicating past results in the Chinese context, we predict that
H5: Group potency has a direct positive effect on group performance.
Group Identification and Group Performance
Identification with work unit has been related to individual job performance (Walumbwa, Avolio, and Zhu, 2008)
because identification is associated with individual’s motivation to achieve collective goals. Walumbwa et al. (2008)
also suggest that strong identification with work unit tends to promote positive responses toward work units or
organizations which, in turn, promote higher job performance. At the individual level, perceived identification helps
people maintain a positive view of themselves and enhances people’s self-esteem (Dukerich, Golden, & Shortell,
2002) leading to higher job performance. We expect the same mechanism to work at the group level where group
identification leads to positive group evaluations leading to higher group performance. Therefore, we predict that
H6: Group potency mediates the relationship between group identification and group performance.
Methods
Research context and sample
As part of a study on team creativity (Farh, Lee, & Farh, 2010), we collected data from 71 project teams of an IT firm
with over 10 000 employees in the Greater China region. One-quarter to one-third of these employees were engaged
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
1152 C. LEE ET AL.
in IT service projects for corporate clients in project teams. A temporary project-based team is comprised of team
members from different hierarchical levels in the company, different functional units, different locations, and
different regions. In an attempt to satisfy customer demands, team members may have to adjust and adapt to
unexpected situations and task contexts.We believe our context is appropriate for studying group potency over group
or collective efficacy since the project teams operate in a complex task environment and perform multiple tasks.
Two types of surveys were collected. The first was the member survey. Member surveys asked team members
about fostering acceptance of group goals, goal interdependence, group identification, and group potency. The
second was the project manager survey. In this survey, the project manager reported on project context (including
project tenure, percentage of project completion, team size etc.) and project team performance. They then asked
the team members to complete the members’ survey. Team members and project managers’ surveys were completed
within one to two weeks time frame.
A project manager was assigned by the focal company at the project start time as the single point of contact and
was responsible for the project outcomes from the beginning to the end of the project. His/her mission was to form
a project team to design and deliver the expected services to the customer during the project cycle. The expected
project scope, project budget and delivery schedule were normally set in the initial stage of the project. The project
manager was responsible to find the best people to fulfill the customer’s expectations and contractual requirements
within the constraints of limited funds and time. Most service projects in this IT firm lasted for six months to two
years. We sampled projects that were at least 10–15 per cent into the project stage so that the team members had
had chances to interact with each other. A typical project team in the focal firm was comprised of a project manager
and 5–20 team members. The project manager led team members to complete the project. Some projects could be
very large with several dozen team members. These large teams were often broken down into sub teams of 5–20
members. In such cases, sub-teams were the unit in this study. Performance evaluations were based on the sub-teams’
performance. The sub-team leader was usually the project manager.
Our sample consisted of 422 team members and 71 project managers from 71 project groups. The response rates
from the 71 project managers and the 422 team member samples were 71 and 75 per cent, respectively. Among
the 422 subordinate respondents, 74.9 per cent were male; their mean age was 32 years with a mean organizational
tenure of 4.28 years. The average team size was six members. Of the team members, 95.1 per cent had university
and above degrees. Not all project team members came from the focal firm. The percentage of the team members
who were external contractors and customers was 40 per cent. Among the 71 project managers, 83.1 per cent were
male, their mean age was 36.2 years, and their mean organizational tenure was 5 years. These project managers had
either university (66.2 per cent) or master’s level or above degrees (31 per cent).
Data from the project managers were collected through the Internet survey aided by telephone interviews
concurrently. Telephone interviews were used to ensure cooperation and that the managers understood all the
questions on the survey. The members completed their questionnaires using the Internet. Since members came from
three areas in China, three versions of the questionnaires were used. Chinese with simplified characters was used
in the mainland. Chinese with complex characters was used in Taiwan. An English version was used in Hong Kong.
To ensure measure equivalence in the Chinese and English versions, the scales used in this study were translated
into Chinese and then translated independently back into English (Brislin, 1980). Expert judges in Chinese
also examined the questionnaire to ensure that the items were interpretable in Chinese. Unless noted, all multiple-
item measures used a seven-point response scale ranging from ‘‘strongly disagree’’ (1) to ‘‘strongly agree’’ (7).
Measures
Fostering the acceptance of group goals was measured with a four-item scale used by Podsakoff, MacKenzie, and
their colleagues (cf. Podsakoff et al., 1997; Podsakoff, MacKenzie, & Bommer, 1996; Podsakoff, MacKenzie,
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
PROMOTING GROUP POTENCY 1153
Moorman,&Fetter, 1990). This scalemeasured the extent towhich leaders encouraged employees towork together toward
a common goal. The specific items usedwere ‘‘My projectmanager gets the team towork together for the samegoal,’’ ‘‘My
project manager fosters collaboration among team members,’’ ‘‘My project manager develops a team attitude and spirit
among his/her team members,’’ and ‘‘My project manager encourages members to be team players.’’
Goal interdependence was measured using three items adapted from previous research assessing individual
team member’s perceptions of goal interdependence (Tjosvold, 1984; Van der Vegt & Janssen, 2003; Van de Vegt,
Emans, &Van de Vliert, 1999). Respondents were asked to indicate to what extent each of the following statements
described their relationship with the other team members: ‘‘Goal attainment for one team member facilitates
goal attainment for the other teammembers;’’ ‘‘Gain for one teammember means gain for the other teammembers;’’
and ‘‘Success for one team member implies success for the other team members.’’
Group identification was measured, as in Van de Vegt and Bunderson (2005) and Van der Vegt, Van de Vliert, and
Oosterhof (2003), using four items from the affective commitment scale (Jehn, Northcraft, &Neale, 1999). A sample
item was, ‘‘I am proud to tell others that I am part of this team.’’
Group potency was measured using four items from Guzzo et al. (1993). These four items were adapted to
the project team context. The items included ‘‘No task is too tough for my team,’’ ‘‘My team has confidence in itself,’’
‘‘My team expects to be known as a high performing team,’’ and ‘‘My team can get a lot done when it works hard.’’
Group performance was measured by four items taken from prior research (e.g., Alper, Tjosvold, & Law, 2000)
and adapted to the IT project context based on focus group interviews. Project managers rated their team’s
performance at the time of the interview on four criteria: (a) The team has produced output of high technical quality;
(b) the team has earned high customer satisfaction; (c) the team has kept its project on schedule; and (d) the team has
excellent cost performance.
Control variables. Prior research has demonstrated a relationship between team size and outcomes (Ancona &
Caldwell, 1992; Van de Vegt & Bunderson, 2005), we controlled for team size in our analyses. Team size
was measured by the total number of teammembers. Project tenure (similar to group longevity) was measured by the
number of months the project had been started by the time we surveyed the project manager. Project completion
stage was measured by the percentage of the project work that has been completed at the time of the survey.
Analysis
Teammembers provided ratings of thewhole group on goal interdependence, fostering the acceptance of group goals
by the project manager, group identification, and group potency. Project managers provided ratings of team
performance. We first conducted confirmatory factor analysis (CFA) at the team member level to examine the
factorial structure of the subscales for measuring goal interdependence, fostering acceptance of group goals, group
potency, and group identification. Table 1 shows the CFA results. An a priori four-dimensional factor structure fit the
data reasonably well, x2 (84, N¼ 422)¼ 310.93, p< 0.01; RMSEA¼ 0.08; GFI¼ 0.91; NNFI¼ 0.94, CFI¼ 0.95,
SRMR¼ 0.05. All items loaded significantly on their designated factors with factor loadings ranging from
0.48 to 0.95. To establish the discriminant validity of the constructs, we compared the above baseline model to
alternative models. As shown in Table 1, the CFA results indicated that the alternative model fit the data poorly, and
had a significantly worse fit than the baseline model. Taken together, these results suggest that the constructs
measured were distinct and that the measures had construct validity. These findings suggest that the four subscales
were valid for measuring their respective constructs at the individual level.
Data aggregation. Aggregating individual ratings to the group level is logically justified in measuring goal
interdependence, fostering acceptance of group goals, group identification, and group potency because all these
variables refer the characteristics of the group. To aggregate them to the group level, we must demonstrate that there
is sufficient within-group homogeneity. We tested whether the ratings of group members were reasonably
homogeneous before the data were aggregated to the group level, using the Rwg (J) index, which is an estimate of
inter-rater agreement in multi-item scales (James, Demaree, &Wolf, 1993). The median Rwg (J) indices for the four
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
Table 1. Comparison of measurement models for study variables (N¼ 422)
Models Descriptions X2 df Dx2 RMSEA NNFI CFI
Null model All the indicators are independent 4601.66 105Baseline model(four-factors)
Fostering group goal,goal interdependence,group identification, and group potency
304.20 84 310.93�� 0.08 0.94 0.95
Model 1 (three factors) Fostering group goal andgoal interdependence werecombined into one factor
842.83 87 538.63�� 0.15 0.80 0.83
Model 2 (three factors) Group identification andgroup potency were combinedinto one factor
512.91 87 208.71�� 0.11 0.89 0.91
Model 3 (two factors) Fostering group goal and goalinterdependence were combinedinto one factor; group identificationand group potency were combinedinto another factor
1054.05 89 749.85�� 0.17 0.75 0.79
Notes: ��p< 0.01.
1154 C. LEE ET AL.
variables across the 71 teams were 0.95 for goal interdependence, 0.95 for fostering acceptance of group goals, 0.78
for group potency, and 0.90 for group identification. George and Bettenhausen (1990) argued that an Rwg (J) greater
than or equal to 0.70 could be considered as an indicator of good agreement within a group. We thus concluded
that within-team ratings for these four variables were homogeneous enough to be aggregated to the team level.
Correlations among the study’s variables at the team level are shown in Table 2.
Path analysis.We assessed the proposed model with maximum likelihood estimation using LISREL 8.5 (Joreskog
& Sorbom, 1993). All subsequent analyses were based on the covariance matrix. Since our sample size was small
(71 teams) in this study and our major purpose was to investigate the causal relationships among the latent
factors, we specified the measurement model by using the averages of all the items measuring a construct as
a single indicator of that construct (James, Mulaik, & Brett, 1982). Following Barrick, Mount, and Strauss (1993),
we fixed the error variances of the manifest variables and paths from the latent factors to the manifest variables
using observed variances of the manifest variables and their reliability (see Alper et al., 2000; Law & Wong, 1999;
Tsai & Huang, 2002 for recent applications of this approach). Specifically, the paths were set as the product of
the square root of the reliability and the observed standard deviations of the manifest variables. Error variances of
the manifest variables were set as the observed variances of the manifest variables multiplied by one minus their
reliability estimates. Reliabilities were estimated using the coefficient alpha.
Table 2. Means, standard deviations, and correlation matrix among variables (N¼ 71)
Mean SD 1 2 3 4 5 6
1. Group performance 5.44 0.96 0.762. Group potency 5.56 0.52 0.35�� 0.743. Group identification 5.53 0.59 0.21 0.62�� 0.914. Fostering group goal 5.63 0.66 0.03 0.48�� 0.55�� 0.945. Goal interdependence 5.80 0.39 0.19 0.45�� 0.59�� 0.36�� 0.816. Team size 5.94 2.34 0.06 0.14 0.22 0.11 0.21 —7. Project Tenure (in months) 9.07 9.19 �0.07 �0.27� �0.04 �0.04 �0.16 0.018. Project completion stage 64.82 25.89 0.10 �0.17 �0.05 �0.11 �0.20 0.37��
Note: Values on the diagonal are Cronbach’s alphas.�p< 0.05. ��p< 0.01 (two tailed tests).
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
PROMOTING GROUP POTENCY 1155
Results
The means, standard deviations, Cronbach’s alphas, and bivariate correlations of all major variables are
presented in Table 2. As can be seen from Table 2, Cronbach alpha for multi-item scales ranged from 0.74 to 0.94,
indicating that our measures were reliable. Team size, project tenure, and project completion stage were
uncorrelated with team performance (r¼ 0.06,�0.07, and 0.10, respectively). Nevertheless, we first conducted path
analysis to test the hypothesized structural model (Figure 1) with team size, team tenure, and project completion
stage as controls. Because the results obtained with controls were nearly identical to those obtained
without controls, for ease of presentation, we reported the findings below without including controls. The
hypothesized structural model fits the data well, x2 (5, N¼ 71)¼ 5.42, p> 0.37; RMSEA¼ 0.00; GFI¼ 0.97; NNFI
(TLI)¼ 0.99; CFI¼ 1.00. Figure 2 shows the path coefficients from this analysis. All hypothesized paths are
statistically significant (either at p< 0.01 or p< 0.05 levels) and in the predicted directions, offering support of our
hypotheses.
Supporting Hypothesis 1, Figure 2 shows that the positive association between fostering acceptance of group goals
and group identification was statistically significant (p¼ 0.39, p< 0.01). Supporting Hypothesis 2, goal
interdependence was positively related to group identification (p¼ 0.53, p< 0.01). Figure 2 also shows support for
Hypothesis 3 that group identification related positively to group potency (p¼ 0.76, p< 0.01). Hypothesis 4 predicts
that group identification transmits the effects of goal interdependence and fostering acceptance of group goals on
group potency. We tested this hypothesis by examining the indirect effect from fostering acceptance of group goals
to group identification to group potency, which was significant (p¼ 0.30, p< 0.01) and the indirect effect from goal
interdependence to group identification to group potency, which was also significant (p¼ 0.40, p< 0.01). In
addition, neither the direct effect from fostering acceptance of group goals to group potency nor the direct effect
from goal interdependence to group potency was significant when they were added to the model, which suggests
that group identification fully mediated these relationships. Thus, Hypothesis 4 was fully supported. Hypothesis 5
regarding the positive association between group potency and group performance was supported (p¼ 0.43,
p< 0.01). Hypothesis 6 predicts that group potency mediates the effect of group identification on group
performance. We tested this hypothesis by examining the indirect effect from group identification to group potency
to group performance, which was significant (p¼ 0.32, p< 0.01). In addition, the direct effect of group identification
on group performance was non-significant when it was added to the model, which suggests that group potency
fully mediated the relationship between group identification and group performance. Thus, Hypothesis 6 was fully
supported.
Figure 2. Standardized parameter estimates for the hypothesized model; ��p< 0.01
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
Figure 3. Standardized parameter estimates for the alternative model 1; �p< 0.05; ��p< 0.01
1156 C. LEE ET AL.
Alternative model evaluation
The alternative models (Figures 3–5) to the proposed model (Figure 2) suggest that the relational order between
group identification, goal interdependence, fostering acceptance of group goals and group potency could be reversed.
It is possible to argue that group potency comes from interdependent goals since feedback from interdependent goals
inform the group about their member capability. It is also possible that fostering acceptance of group goal and group
identification contribute to member’s perception that their goals are interdependent and that this goal
interdependence is the mediator of fostering acceptance of group goals, group identification, and group potency
(see Figure 3, alternative model 1). Additionally, it is possible to argue that groups with interdependent goals and
with leaders fostering acceptance of group goals may develop high group potency first, which in turn enhances each
member’s identification with the group (Figure 4, alternative model 2). In other words, this alternative model
suggests that group potency mediates the effects between goal interdependence and fostering acceptance of group
goals, and group identification, and that group identification further mediates the relationship between group potency
with group performance. The third alternative model (Figure 5, alternative model 3) proposes that group potency,
along with fostering acceptance of group goals and goal interdependence are antecedents of group identification. As
in Figure 5, group identification is hypothesized to mediate the relationship between the antecedents and group
performance. While the theoretical reasoning behind the three alternative models is not as strong as that behind the
proposed model, it is prudent to test these alternative models, given the seemingly high correlation between group
identification and group potency and that these variables were measured from the same source (i.e., group members).
Figure 4. Standardized parameter estimates for the alternative model 2; �p< 0.05; ��p< 0.01
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
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Figure 5. Standardized parameter estimates for the alternative model 3; �p< 0.05; ��p< 0.01
PROMOTING GROUP POTENCY 1157
We then fit the observational data into the alternative models. In the alternative model 1 (see Figure 3), we simply
reversed the relationship between group identification and goal interdependence without changing any of the other
paths in the proposed model. Results show that the fit of this alternative model 1 was poor with x2 (5,N¼ 71)¼ 18.3,
p< 0.01; RMSEA¼ 0.19; GFI¼ 0.91; AGFI¼ 0.73; NNFI¼ 0.72; CFI¼ 0.86. The path from group identification
to group performance was not significant.
In the alternative model 2 (see Figure 4), we simply reversed the relationship between group identification and
group potency without changing any of the other paths in the proposed model. In other words, we still maintained the
fostering acceptance of group goals and goal interdependence links to group identification without switching them to
group potency. Results show that the fit of this alternative model 2 was poor with x2 (5, N¼ 71)¼ 15.48, p< 0.01;
RMSEA¼ 0.20; GFI¼ 0.91; AGFI¼ 0.73; NNFI¼ 0.78; CFI¼ 0.89.
In the alternative model 3 (see Figure 5), fostering acceptance of group goals, goal interdependence, and group
potency were hypothesized to have direct effects on group identification, which, in turn, affects group performance.
Results show that the fit of the alternative model 3 was poor, x2 (5, N¼ 71)¼ 7.90, p< 0.05; RMSEA¼ 0.15;
GFI¼ 0.96; AGFI¼ 0.79; NNFI¼ 0.83; CFI¼ 0.93. Since the three alternative models were not nested within the
proposed model, this prevents us from conducting x2 difference tests to directly compare model fit between
the proposed model and each of the three alternative models. Nevertheless, the three alternative models all had poor
fit as indicated by significant model chi-square values, high RMSEA, and low GFI, AGFI, NNFI, and CFI values.
These observations gave strong support to our proposed model that group potency mediates the effect between group
identification and group performance than the three alternative models.
Discussion and Conclusions
Our paper employs group identification theory and proposes and tests a model of antecedents and consequences of
group potency in project teams from the Greater China Region. Based on the results from 71 project teams and
their project managers, our findings support results of previous studies that group potency relates positively to group
performance (de Jong et al., 2005; Gully et al., 2002; Lester et al., 2002). Our study shows that it is important
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
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1158 C. LEE ET AL.
for members to accept their group’s goals and that goal attainment depends on every member working
collaboratively. Our results suggest that in order for team members to have a heightened sense of group potency, it
is also essential for teams to generate a sense of group identity and to strengthen the group’s identity by fostering the
acceptance of group goals and creating goal interdependence among the team members.
One key finding is the role of the leader in engendering group members’ collective identification. Fostering group
goals and creating goal interdependence provide structure of members’ to interpret how their work roles relate to
the group’s mission, and thereby priming collective identification (Wu, Tsui & Kinicki., 2010). Our findings support
other studies examining other elements of leadership such as transformational by Wu et al. (2010), leader supportive
behavior by Shamir, Zakay, Breinin, and Popper (1998), and leader emphasis on collective identity (Shamir et al.,
2000) are positively related to unit identification. Our results have implication for leadership development in training
leaders what to do in order to foster group identification.
While Lester et al. (2002) found that communication and cooperation facilitated the development of group
potency in newly formed work groups, our study suggests that group identification is one key contributor to group
potency. When team members perceive the team’s goals, interests, and norms as their own, and have a sense of
emotional involvement in the group since their goals are interdependent, this sense of identity and oneness with the
team promotes a heightened sense of potency that contributes to the collective performance. Future studies
should examine other contextual factors, such as team climate including team cooperation and communication, team
support, team member composition and characteristics and reward systems that may inhibit or promote team
identification and potency.
Along with the results of Lester et al. (2002) who found that newly formed high school students teams’ perceived
potency predicted group satisfaction, effort, and performance and those of Hirschfeld et al. (2005) who found
that potency predicted task proficiency, social cohesion, and observed teamwork among newly formed teams in a
military setting, our study further contributes to the predictive validity of group potency with results from 71 project
teams in the Greater China region. Together, the results of these studies suggest that group potency can be created
relatively early in the group formation process and can have positive effects on group outcomes. Future studies
should examine the generalizability of these findings in other groups and other cultural contexts.
Theoretically, our study indicates the importance of integrating group identification and social cognitive theories
in predicting group level outcomes. Developing group norms via fostering acceptance of group goals and goal
interdependence are ways to integrate personal and group identification. Future studies should examine other
external (e.g., team culture, role models) or internal (team member dispositions) factors that influence the
identification process.
Limitations
Our study has several limitations. The first is our cross-sectional design, which raises questions regarding reverse
causality. For example, one might argue that, as in our alternative model, members developed group potency
that influences their group identification. Recently, Wu et al. (2010) in a three-wave study (each wave one month
apart), found that group-focused transformational leadership (time 1) predicted group identification (time 1), and
that group identification (time 1) predicted time 2 collective efficacy. Group identification and collective efficacy was
also positively related (b¼ 0.51, p< 0.05). Their time 2 collective efficacy was also related positively to time 3
group effectiveness (group performance and group viability). These empirical studies, combined with our theoretical
argument, suggest that identification leads to potency, rather than that potency leads to identification. In addition,
results of our alternative models showed poorer fit than the hypothesized model. Although we believe that reverse
causality is a problem in our study.
Given the cross-sectional research design used in our study, we could not completely rule out the possibility of
reverse causation between identification and potency. Future research should examine these causal relationship using
experimental or longitudinal field studies.
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
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PROMOTING GROUP POTENCY 1159
Another limitation is our small sample size (n¼ 71 groups). However, our group-level sample size is comparable
to other published studies. For example, Lester et al. (2002) had a small sample of 31 groups. Further, Van der Vegt
and Bunderson’s (2005) study analyzed 57 teams. Given these prior studies, we believe that sample size is not a
significant issue in our findings.
The third limitation may be method bias. We used multiple sources (team members and project managers) to
reduce the possibility of artifacts associated with single-source bias. Only one of the five variables (group
performance) in our hypothesized model was assessed by the project managers. Additionally, since our study
employed a correlational design and most of the variables (with the exception of group performance rated by
supervisors) came from the same source, our study is susceptible to common method variance (Podsakoff,
MacKenzie, Lee, & Podsakoff, 2003). Table 1 shows the comparison of measurement models and the results
demonstrate discriminant validity of the constructs in our study. Thus, common method bias is unlikely to account
for our entire results.
Fourth, our study was conducted in one organization in Chinese context. Although this may reduce the
generalizability of our findings, testing our hypothesized model in one organization and one cultural context reduces
the likelihood that contextual factors, such as organizational culture, might play a role in affecting our results. Future
studies should extend our theoretical model cross-culturally and examine longitudinally cross-level effects from both
individual member preferences for working in groups and leadership orientation in affecting group identification and
potency.
Lastly, time and team longevity may affect team effectiveness. However, team longevity did not affect the positive
relationship between group potency and team effectiveness in Gully et al.’s (2002) meta-analysis. Our results were
similar to Gully et al.’s such that project completion stage did not affect the results of our hypothesized model.
As suggested by Gully et al., potency perceptions may become increasingly homogenous over time. More
longitudinal and experimental studies are needed to examine how group potency develops in various team settings.
Practical implications
Our study offers several implications for practitioners trying to increase group performance in cross-national project
teams. Our findings suggest that, in order to capitalize on potential advantages offered by groups, managers should
actively enhance the sense of group identification of group members. Our study suggests that there are numerous
ways to enhance group identification. For example, managers can enhance group identification by fostering the
acceptance of group goals that are interdependent. Our study further suggests that strengthening group identification
is worthwhile because group members develop a stronger sense of group potency, which leads to greater group
performance.
In conclusion, our results using project teams from the Greater China region are consistent with those reported
by Gully et al. that group potency is positively related to group performance. We further suggest that it is important
to understand the sources of group potency using group identification theory (Van der Vegt & Bunderson, 2005).
Acknowledgements
The work described in this paper was fully supported by a grant from the Research Grants Council of the Hong Kong
Special Administrative Region, China (Project HKUST6306/04H) awarded to Jiing-Lih Farh and Cynthia Lee. The
work described in this paper was also supported by the Walsh Professorship awarded to Cynthia Lee by the College
of Business Administration, Northeastern University.
Copyright # 2011 John Wiley & Sons, Ltd. J. Organiz. Behav. 32, 1147–1162 (2011)
DOI: 10.1002/job
1160 C. LEE ET AL.
Author biographies
Cynthia Lee, PhD is the Chair Professor, Department of Management and Marketing, The Hong Kong Polytechnic
University and Professor, Management and Organizational Development Group, Northeastern University. Her
research interests focus on managing change and innovation, performance management, employee-employer
relationships, and job insecurity especially in Chinese contexts.
Jiing-Lih (Larry) Farh is the Chair Professor of Management at the Hong Kong University of Science and
Technology. He received Ph.D. from Indiana University at Bloomington. His research interests focus on the study of
organizational behavior in Chinese contexts (such as cultural values, leadership, teams, and organizational
citizenship behavior).
Zhi-jun Chen is a doctoral student specializing in organizational behavior in the Department of Management at the
Hong Kong University of Science and Technology. His research interests include organizational citizenship
behavior, cultural values, demographic diversity and leadership issues in the Chinese context.
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