Self-efficacy in product development student teams - what shapes students' perceived self-efficacy

This paper aims to provide a perspective of the student's perceived self-efficacy in a team based project course where students face open-ended, ill-defined problems. We discuss the development of self-efficacy in the team members and how different situations and events affect their perceived self-efficacy. The data used in this paper was gathered through interviews from students taking a yearlong masters' level capstone course. Results of the study show that the students' overall self-efficacy increased most in team-based moments. We show also how entrepreneurial self-efficacy of students can be enhanced during problem-based New Product Development process. Finally we will conclude the potential of the researched course to provide practical experiences of project work as well as its potential for delivering entrepreneurial skills for the students during their education.