Innovation capability of the company: the roles of leadership and error management

Hennings Bundtzen,Gerriet Hinrichs

doi:10.21272/mmi.2021.1-09

Hennings Bundtzen, Gerriet Hinrichs

Open Access

https://doi.org/10.21272/mmi.2021.1-09

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Abstract

Extensive research has been conducted promoting empowerment, inclusive decision making, and self-determination by employees. However, where does an organization initiate change if employees stay in their comfort zone and rather have a work-to-rule mentality? They just do not take over responsibility and the power they are given. The inductive case study involved first-hand data about leader-member exchange and corporate culture. A qualitative research approach was selected by employing personal construct psychology to receive an unbiased cultural view of employees and leaders interacting. A sample of 61 repertory grid structured interviews with 21 leaders and 40 employees produced 782 unique personal assessment criteria. The applied methodology allows a quantitative analysis of these assessments in association with leadership, error management, and employees' proactive behavior. This unusual psychological-based approach chosen as intuitive interviews predicated on personal construct psychology is unlikely to provoke socially desirable or questionnaire-driven results. Based on the case study findings, a systematic review of contemporary scientific literature was conducted to generate broadly applicable results. The final qualitative synthesis included 41 research articles relevant to the investigated topic. Theoretical and empirical results allowed concluding that leadership vulnerability supports error management and employees' psychological safety. These combinations are prerequisites to proactive behavior. Additional preconditions to proactivity are employee resilience and organizational commitment. This article's results could give practical recommendations in case organizations lack the proactive behavior of their workforce. Finally, this article advocates further research on vulnerability in leadership and managers communicating their own weaknesses and mistakes as it is an underrepresented area in current scientific literature.

Highlights

In times of COVID-19, changes happen especially fast in the economic environment, such as political decisions or changing consumer reactions
The inductive case study involved first-hand data about leader-member exchange and corporate culture
The findings showed that the contemporary scientific literature in error management had a general approach without a clear statement regarding managers' error

Summary

Introduction

In times of COVID-19, changes happen especially fast in the economic environment, such as political decisions or changing consumer reactions. In such a context, employees' proactive behavior is significant to ensure that organizations react quickly to new requirements. An organization that incorporates error management and organizational learning approach is likely to create a work environment that stimulates innovation and constant improvement of services (Van Dyck et al, 2005; Maurer et al, 2017) The advantage in such an environment is that employees openly admit errors or search for help to rectify their mistakes (Van Dyck et al, 2005). What is about leaders? Don't they make mistakes the same as any employees, and doesn't a turbulent time like in 2020's Covid-19 pandemic increase the likelihood of errors

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