Leading psychologically safe digitally enabled project teams

Eleni Papadonikolaki and Bethan Morgan

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Using a human-centric view, this work investigates how digitalization impacts the human and social capital of projects beyond task orientation. How do leaders nurture psychological safety—encouraging interpersonal risk-taking—to support digitalization, fostering creativity, learning and growth? Through empirical research with interviews, focus groups, and soft systems methodology, we identified six factors conducive to psychological safety in digitally enabled projects: adaptability, learning, communication, organizational development, technology, and workplace. The findings revealed a threefold role for leadership in developing innovative and highly collaborative project teams: strategic leadership, horizontal leadership, and project leadership, positioning human and social capital at the core of digitalization in projects.

Keywords: digitalization; Industry 5.0; project teams; psychological safety; soft systems methodology (search for similar items in EconPapers)
JEL-codes: J50 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2026-08-03
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Published in Project Management Journal, 3, August, 2026, 57(2), pp. 170-187. ISSN: 8756-9728

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