Abstract
Errors are inevitable in an increasingly risky and dynamic entrepreneurial environment. The error management and the error climate perceived by the members are crucial to the subsequent innovation behaviors. Maintaining and improving the psychological capital of entrepreneurs under errors is not only the psychological activities of entrepreneurs themselves but also a critical management process in which an organization can influence the psychological factors and behaviors of entrepreneurs through error management climate. In the context of Chinese culture, this study explores the influence of error management climate on entrepreneurial self-efficacy and innovation behavior under the boundary condition of Zhongyong thinking. Two hundred ninety samples of Chinese entrepreneurs are empirically analyzed in this study, and results show that: (1) error management climate and entrepreneurial self-efficacy have significant positive effects on entrepreneurs’ innovation behavior; (2) entrepreneurial self-efficacy mediates the relationship between error management climate and innovation behavior; and (3) Zhongyong thinking plays moderating roles in the process of error management climate influencing innovation behavior. This study complements the entrepreneurship literature with its focus on error management climate as an essential antecedent of entrepreneurial self-efficacy, and promotes an understanding of how Chinese practitioners promote innovative behavior from a cultural perspective.
Highlights
With the increasing dynamics and uncertainty of the entrepreneurial environment, entrepreneurs face more difficulties in the entrepreneurship, and errors are never utterly avoidable because of the limitations and imperfections in the practice (Khelil, 2016)
Based on the conservation of resources theory (COR), this study investigates whether the error management climate (EMC) is an important factor in translating errors into the psychological capital of entrepreneurs and effectively carrying out innovative behaviors from the perspectives of entrepreneurial self-efficacy (ESE) and Zhongyong thinking (ZYT)
This study first provides evidence that EMC has a positive effect on innovation behavior (IB) of entrepreneurs
Summary
With the increasing dynamics and uncertainty of the entrepreneurial environment, entrepreneurs face more difficulties in the entrepreneurship, and errors are never utterly avoidable because of the limitations and imperfections in the practice (Khelil, 2016). Causes of errors may include fatigue, fear, limited cognition, incomplete information, and flawed decision-making (Fruhen and Keith, 2014). Errors in the entrepreneurship process bring a range of negative consequences, but can be excellent opportunities for organizational learning and innovation (Headd, 2003). Error Management Climate can be part of developing innovation and bringing it to the market (Hsu et al, 2015). Increasing corporations take errors as part of climate management, and how they perceive errors will affect reaction to errors (Rupert et al, 2019)
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