Abstract
Purpose This study aims to explore psychological safety as a potential moderating mechanism for the relation between functional diversity and individual perceptions of learning, and functional diversity and team performance in self-assembled teams. Design/methodology/approach To test these relationships, the authors conducted a cross-level, time-lagged, quasi-experiment, using a sample of 143 self-assembled teams. In one condition, participants formed into functionally diverse teams, and in another condition, participants formed functionally homogeneous teams. Findings Results suggest that functional diversity and psychological safety have an interactive effect on both individual learning and self-assembled team performance, albeit in different directions. Specifically, low psychological safety was more deleterious for individuals on functionally diverse teams than functionally homogeneous teams when it came to perceptions of learning, but the opposite was true when it came to team performance. Originality/value The results of this study indicate that it is critical to train team members on developing psychological safety, both in traditional and functionally diverse contexts.