HOW PSYCHOLOGICAL SAFETY ENABLES INNOVATION: THE EFFECTS ON POTENTIAL AND REALISED ABSORPTIVE CAPACITY

Although psychological safety has been long recognised as critical in the context of information sharing, risk-taking, collaboration, and the process of organisational learning, its effects on absorptive capacity (ACAP) have not yet been theorised and empirically tested. Consequently, the present study’s objective is to fill this important research gap by explaining the role of psychological safety in the context of two dimensions of ACAP–potential ACAP (PACAP) and realised ACAP (RACAP). To empirically test the hypothesised model, this study uses survey data that were collected in the healthcare industry. The study’s results confirm some of the main assumptions. Consequently, the paper’s findings advance past research on innovation management by expanding our understanding of how business organisations could better utilise their internal resources to support the development of innovative capabilities.