Magzter Gold (Sitewide CA)
The European Business Review (Digital)

The European Business Review (Digital)

1 Issue, March/April 2025

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PSYCHOLOGICAL SAFETY: THE VISIBLE HAND OF DISRUPTIVE INNOVATION

In an era defined by rapid technological advancements and unprecedented global challenges, the need for disruptive innovation has never been greater. Yet, we are witnessing a marked decline in such innovation. What's stifling our progress? The answer may lie in an often-overlooked aspect of organisational culture: psychological safety. Organisational culture sets the tone for how employees interact, share ideas, and take risks. A key aspect of a culture that fosters innovation is psychological safety. However, the concept of psychological safety is widely misunderstood, and the absence of a clear and actionable decodification of its enablers hampers its implementation. This article explores the critical role of psychological safety in fostering innovation and proposes a framework for its successful decodification and subsequent nurturing.
PSYCHOLOGICAL SAFETY: THE VISIBLE HAND OF DISRUPTIVE INNOVATION
INTRODUCTION Economic uncertainty, geopolitical instability, climate change, cybercrime, and a rapidly changing technological landscape add further layers of complexity to an already demanding role for leaders. These complexities demand a surge of disruptive innovation to overcome limitations, achieve breakthroughs in effectiveness and navigate the ever-changing landscape with global solutions. However, a concerning trend emerges from recent research: disruptive innovation is in decline. Studies documented a staggering 90% decrease in disruptive scientific innovation since the mid-20th century, mirroring a decline in U.S. research productivity (Park et al., 2023; Bloom et al., 2020). This shift towards incremental improvements, driven in part by rising research costs (Gold, 2021), poses a significant threat to economic growth, public health, and our ability to address existential challenges. While increasing research costs undoubtedly play a role, a…
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The European Business Review (Digital) - 1 Issue, March/April 2025

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