Improving performance through leaders' forgiveness: the mediating role of radical innovation

Abstract

PurposeThe objective of this study is to analyze the relationship between leaders' forgiveness and organizational performance using radical innovation as an explanatory variable.Design/methodology/approachThe study was conducted in a sample frame of 11,594 Spanish companies. A total of 600 valid questionnaires were obtained. The structural equations were used to validate the proposed hypotheses.FindingsResults confirmed the hypotheses proposed in the model: the authors provided, through structural equations, empirical evidence of the relationship between leaders' forgiveness and organizational performance, mediated by radical innovation. Leaders' forgiveness promotes radical innovation and, in turn, performance.Research limitations/implicationsThe sample of companies is heterogeneous in terms of firm turnover, size and age. The study is focused on radical innovation.Practical implicationsThe present study may help to develop more humane policies to manage human resources, by taking into account employees' feelings and needs.Originality/valueThe business field is closer to competitive values and has traditionally underestimated the importance of leaders' forgiveness. This is one of the few studies that empirically analyze the consequences of leaders' forgiveness within organizations.