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

Purpose The objective of this study is to analyze the relationship between leaders' forgiveness and organizational performance using radical innovation as an explanatory variable. Design/methodology/approach The 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. Findings Results 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/implications The sample of companies is heterogeneous in terms of firm turnover, size and age. The study is focused on radical innovation. Practical implications The present study may help to develop more humane policies to manage human resources, by taking into account employees' feelings and needs. Originality/value The 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.