Empowering project team to perform: Directive and facilitative antecedents

Abstract

This study examines the conditions for enhancing the psychological empowerment of a development project team. Drawing on the social exchange theory and the literature on empowerment, we conceptualize two forms of empowerment antecedents: directive and facilitative. We analysed project-specific data on empowering practices and project performance using structural equation modelling. We found that both directive and facilitative antecedents psychologically empowered the project team. Furthermore, team diversity and participative employers moderate the effect of psychological empowerment on substantive project performance but not on innovation development. Financial incentives strengthen the facilitative antecedent-psychological empowerment relationship. This study contributes to project management literature by introducing project team-oriented empowerment antecedents and validating the conditions that affect psychological empowerment. In practice, while employers are instrumental in crystallising project goals and responsibilities, a psychologically empowered team should have the autonomy to determine the best way to develop innovations.