Learning From Mistakes: How Mistake Tolerance Positively Affects Organizational Learning and Performance

Abstract

Organizational learning has been shown to affect performance. This study offers a fine-grained view regarding different types of learning opportunities. Specifically, opportunities to learn from mistakes are examined. Using three separate samples, we first establish statistically reliable and unidimensional measures of both organizational learning and mistake tolerance. Second, we empirically demonstrate the mediating role of organizational learning on the mistake tolerance–performance relationship. Our results offer findings that will generalize to other organizational contexts. We conclude with a dialogue suggesting prescriptive advice for managers and provide a discussion of how learning from mistakes can be an important catalyst in organizational change. Using specific items from our survey, we stress that managers need to make a conscious effort to communicate to employees the value in learning from mistakes as an important part of improving and changing existing organizational practices.