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The Impact of Psychological Safety on Employee Performance: A Study of the Pharmaceutical and Financial Service Sectors in Indonesia

Giftira, Maya (2025) The Impact of Psychological Safety on Employee Performance: A Study of the Pharmaceutical and Financial Service Sectors in Indonesia. Masters thesis, Dublin, National College of Ireland.

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Abstract

Introduction – Psychological safety is a pivotal factor in increasing employee performance. It encourages employees to take risks more confidently, thereby enhancing their performance. In the pharmaceutical and financial services industries in Indonesia, employee performance plays a crucial role in fostering high-performing teams and a positive organizational culture. Therefore, it is essential to understand how psychological safety impacts employees' performance in the highly regulated sectors.

Objective – This study aims to investigate the influence of psychological safety on employee performance, including both task and contextual performance, as well as CWB, in the pharmaceutical and financial services sectors in Indonesia. It also examines how socio-demographic variables influence this relationship.

Method – The study employs a quantitative approach with a cross-sectional research design. Electronic surveys are distributed to 80 permanent employees in the pharmaceutical and financial services industries in Indonesia to collect data on psychological safety, employee performance (task performance, contextual performance, and CWB), and socio-demographic variables. The survey distribution uses convenience and snowball sampling techniques. Multivariate regression models, Pearson correlation tests, and reliability analysis were used for data analysis. Hypothesis testing was done using hierarchical regression.

Results – The results revealed a significant relationship between psychological safety and task and contextual performance. Specifically, this study finds that contextual performance is even more predictive of psychological safety. Additionally, employees who were married did not appear to have a significant effect. Substantial variation in employee performance could be explained by the model, highlighting the importance of psychological safety for workplace outcomes.

Conclusion – This research offers valuable insights into the impact of psychological safety on employee performance in the regulated industries in Indonesia. These findings underscore the importance of creating a psychologically safe environment in the workplace to enhance both task and contextual performance. It also contributes to the academic literature on psychological safety and workplace performance.

Item Type: Thesis (Masters)
Supervisors:
Name
Email
-, Paul
UNSPECIFIED
Uncontrolled Keywords: Psychological safety; employee performance; task performance; contextual performance; pharmaceutical sector; financial services; Indonesia
Subjects: B Philosophy. Psychology. Religion > Psychology
R Medicine > RS Pharmacy and materia medica
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > Human Resource Management > Performance Management > Employee Engagement
H Social Sciences > HG Finance > Financial Services
Divisions: School of Business (- 2025) > Master of Science in International Business
Depositing User: Ciara O'Brien
Date Deposited: 16 Dec 2025 15:08
Last Modified: 16 Dec 2025 15:08
URI: https://norma.ncirl.ie/id/eprint/9042

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