An Adaptive Network Model Simulating the Effects of Different Culture Types and Leader Qualities on Mistake Handling and Organisational Learning

Abstract

This paper investigates computationally the following research hypotheses: (1) Higher flexibility and discretion in organizational culture results in better mistake management and thus better organizational learning, (2) Effective organizational learning requires a transformational leader to have both high social and formal status and consistency, and (3) Company culture and leader’s behavior must align for the best learning effects. Computational simulations of the introduced adaptive network were analyzed in different contexts varying in organization culture and leader characteristics. Statistical analysis results proved to be significant and supported the research hypotheses. Ultimately, this paper provides insight into how organizations that foster a mistake-tolerant attitude in alignment with the leader, can result in significantly better organizational learning on a team and individual level.