LAUSR

Errors are ubiquitous in organizational life and adversely affects organizational performance, creates negative publicity, damage organizational image and customer satisfaction. In view of its importance, we have developed a moderated mediated model to analyze the impact of organizational error management culture and organizational performance by extending error management and share cognition theory. The newly developed model was tested in the service industry of Pakistan. The sample size of the study was 300 employees with a response rate of 96%. The data was collected through a web-based questionnaire. The constructs used in the study were adapted from earlier established scales and measures. Smart PLS was used to test the structural model. The results show that error management culture has a significant positive effect on organizational performance. Moreover, we found organizational learning from errors and innovative work behavior mediates the association of error management culture and organizational performance. Furthermore, we found that perceived psychological safety moderated the direct relationship between organizational learning from errors and error management culture. The current study has significant implications for management, theory, and research. For instance, perceived psychological safety in earlier studies has been used as a mediator while we have used it as a moderator. In addition, we tested multi mediation (i.e., organizational learning from errors and innovative work behaviour) to empirically validate the relationship of error management culture and organizational performance