To innovate at work is risky as every new endeavour is also error-prone. Therefore, the way errors are managed in organisations may be related to organisations innovativeness. We studied error management culture as one important and often overlooked organisational culture factor hypothesised to be related to organisational and individual innovativeness. Error management culture implies that a firm accepts that people make errors and uses "organizational practices related to communicating about errors, to sharing error knowledge, to helping in error situations, and to quickly detecting and handling errors" to deal with errors (Van Dyck, Frese, Baer, & Sonnentag, 2005, p. 1229. Our sample consists of 30 companies with N 5 227 employees. To decrease the problem of common method variance, we split the samples within each company into two subsamples: one subsample was used for the measurement of error management culture and the other one for the measure of organisational innovativeness. A multilevel structural equation modelling (MSEM) analysis showed error management culture to be related to organisational and individual innovativeness. Organisational innovativeness was a mediator for the relationship between error management culture and individual innovativeness. A potential implication is that organisations wanting to increase their innovativeness may need to examine their error management culture.
We examine whether organizational climate for personal initiative (PI climate) is conducive to firm innovation in small and medium-sized firms. Employees with PI are self-starting, proactive, and persistent, and a PI climate is characterized by common norms of encouraging PI at the workplace. A climate that fosters PI among employees would enhance the innovation output of firms, since it increases not only proactive thinking about future opportunities and problems but self-starting action as well. This PI climate is distinct from the team climate inventory (TCI, Anderson and West, 1996). We contrast the PI climate measure (Baer and Frese, 2003) with the TCI for predicting radical and incremental innovations in firms. Findings reveal (with 25 firms, N = 82 employees) that PI climate was related to radical innovation, but not incremental innovation. On the other hand, the TCI (unrelated to radical innovation) was related to incremental innovation. Our study results imply that different organizational climates account for the different forms of innovation in firms.
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