Psychological safety and team cooperation as drivers of dynamic capabilities and performance: a cross-national comparative study between Brazil and Germany

Abstract This study examines how psychological safety and team cooperation shape team dynamic capabilities and performance in organizations from Brazil and Germany. Data were collected from 84 teams ( n = 440) across four financial-sector companies. Using partial least squares structural equation modeling (PLS-SEM) and multigroup analysis (MGA), we validated a team-level dynamic capabilities scale adapted from Kump et al. (in Ind Corporate Change 1(24):1149, 2018. https://doi.org/10.1093/icc/dty054 ). Psychological safety positively affected cooperation in both countries, with stronger effects among German teams ( β B = 0.365; β G = 0.568). Psychological safety also influenced dynamic capabilities ( β B = 0.345; β G = 0.209), and cooperation further contributed to dynamic capabilities ( β B = 0.456; β G = 0.404). Dynamic capabilities predicted performance significantly only in Germany ( β B = 0.089, n.s.; β G = 0.271, p < 0.001). MGA confirmed significant cross-national differences in H2 and H4, indicating stronger behavioral and performance-related effects among German teams. Overall, the findings advance understanding of the behavioral foundations of team dynamic capabilities and offer practical insights for enhancing performance through psychologically safe and cooperative team environments.