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Purpose

This study aims to examine the relationship between concrescent conversation environment (CCE), psychological safety and team effectiveness. Although CCE has been known to influence team outcomes, little is known about how it influences them. Integrating the social constructionist and social psychology perspectives, this study argues that CCE ignites a climate of psychological safety resulting in “joint-action” necessary for positive team outcomes.

Design/methodology/approach

Survey data were collected from 301 team members from US firms operating in different industries. Data were analyzed using SmartPLS.

Findings

The study establishes CCE as an antecedent to psychological safety and demonstrates that psychological safety mediates the relationship between CCE and team effectiveness.

Research limitations/implications

This is one of the initial studies to show how verbal behaviors socially construct team dynamics in the shape of psychological safety to influence team outcomes. In doing so, the authors advance the theory pertaining to the role of social exchanges in team processes and outcomes.

Practical implications

The results provide insights on how managers can improve team outcomes by influencing the conversational environment of the team to elicit feelings of psychological safety. The results also suggest that managers must focus on relational outcomes as well, along with performance outcomes.

Originality/value

From a social constructionist perspective, team development is built upon the verbal behaviors of the members as they pursue tasks. However, the extant group dynamics literature undervalues conversations’ role in team processes and outcomes. This is the first study that examines the link between a team's conversational environment, psychological safety and team outcomes.

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