Volume VI Issue II April-June 2026

Name of Author : Sahana Jayakrishna

Title of the paper : Psychological Safety as a Driver of Innovation and Agility in Organisations

Abstract: Organisations must rapidly adapt and innovate in contemporary and unpredictable business environments. Although technology and processes are significant, human elements are essential for maintaining adaptability. This study explores the concept of psychological safety a context in which individuals feel secure to express ideas, take risks, and acknowledge mistakes as a critical factor in enhancing organisational agility and innovation. It integrates insights from organisational psychology and management, highlighting that psychological safety fosters open dialogue, collaboration, and experimentation, which are vital for success in dynamic markets. This study employs a conceptual review approach, referencing studies such as Googles Project Aristotle, which highlighted psychological safety as a vital element for team success. Data from sources such as Gallup and McKinsey suggest that organisations fostering psychological safety see an increase in employee engagement and innovation. The analysis pinpoints three key mechanisms increased trust and knowledge sharing, better adaptability in uncertain situations, and enhanced team cohesion for innovative problem solving. The results ultimately indicate that psychological safety serves as a strategic catalyst for business expansion rather than merely a human resource initiative. Companies can cultivate environments that support flexibility and innovation by fostering leadership grounded in trust and encouraging open communication. This study introduces a framework that connects psychological safety with organisational outcomes and suggests future research paths, highlighting the importance of conducting studies in various cultural and industrial settings within agile environments.

Keywords : Psychological Safety, Innovation, Agility, Organisational Behaviour, Leadership

DOI :

Page Number : 15-27