The relationship between the error management approach and innovation is underexplored. Drawing upon error management theory, we offer a research model to explain how error management, organizational learning, error competence and innovation are connected to manufacturing operations.
We test the proposed model using survey data collected from 237 managers working in 150 US manufacturing organizations. We use semi-structured interviews (n = 32) to complement the survey results.
Our findings highlight several key relationships: Both thinking about errors and error risk-taking are positively related to learning from errors, while covering up errors is negatively associated with learning from errors. Moreover, learning from errors is positively related to error competence, which is in turn positively related to innovation. Additionally, it was found that error risk-taking has a direct positive association with innovation. Interestingly, the findings reveal that the direct relationship between learning from errors and innovation is insignificant, which is found to be fully mediated by error competence.
We fill a critical gap in the operations literature by explaining a mechanism mediating the relationship between the error management approach and innovation, offering real-world insights from the manufacturing sector and making positive error management strategies more practical and credible. Moreover, we offer actionable insights for organizations, potentially reshaping their strategies, improving performance and fostering innovation.
