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Simulations in which MBA students can practice decision-making and leadership skills in team contexts are commonplace in modern business schools. This longitudinal study explored the development of confidence in one's ability to lead (i.e., leadership efficacy) over time in the context of 40 self-directed MBA teams (198 individuals) participating in a 4-day immersive business simulation. Using random coefficient growth modeling (Bliese & Ployhart, 2002; Ployhart, Holtz, & Bliese, 2002), two manifestations of leadership efficacy were examined: the individual-level variable and team-level dispersion. Findings at the individual level indicated that extraversion and cognitive ability were predictors of the initial level of leadership efficacy, and emotional stability, agreeableness, and openness to experience were predictors of the change in leadership efficacy over time. Midpoint feedback received by the team was also related to leadership efficacy. Findings at the team level indicated that dispersion increased over time within teams, but teams that began their lifespan with strong action and transition processes experienced less dispersion from the outset. Also, more positive midpoint feedback caused greater dispersion in the second half of the team's life. Implications for leadership development are discussed.
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