The mediating effect of psychological empowerment on the relationship between participative goal setting and team outcomes - a study in China

In the late twentieth century, it is popular to research the effect of participative goal setting. The general conclusion is that the relationship between participation and performance is inconsistent and unclear at individual level. With team becoming a more dominant mode in organizing, motivating, and managing, it is worthwhile to investigate the effect of participation in team goal setting. This study aims to test the mediating effect of psychological empowerment (PE) on the relationship between participative team goal setting and team identity and team performance. Executive MBA students (371) in 75 groups from China Europe International Business School in China participated in the study. The data from Business Strategy Game and questionnaire found positive relationship between participative team goal setting and team identification, and team performance is partially mediated by PE. Implications for the goal-setting theory and practice are discussed, and future research directions offered.