Inclusive Leadership and Employee's Learning from Errors: A Moderated Mediation Model

Abstract

Although an increasing research attention has been devoted to learning from errors recently, little is known about the role of leadership plays in promoting employee's learning from errors. In order to fill this void, this study developed a moderated mediation model based on the perspective of cost-benefit analysis to investigate the effects of inclusive leadership on employee's learning from errors and tested this model by data collected at two points in time from 206 employees of more than 80 organizations in a variety of industries in China. Consistent with our hypotheses, the results found that inclusive leadership (measured at Time 1) was positively related to employee's learning from errors (measured at Time 2) and this relationship was partially mediated through perception of psychological safety (measured at Time 2). The results also demonstrated that employee's power distance (measured at Time 1) moderated the direct relationship between inclusive leadership and perceived psychological safety, as well as the indirect relationship between inclusive leadership and employee's learning from errors through psychological safety in such a way that the relationship was stronger when power distance was lower. Finally, the theoretical and practical implications and the future research directions were discussed.