To investigate the role of knowledge absorptive capacity on the relationship between learning from organizational error and organizational innovation

Failure or error is a fact of life that most organizations cannot escape from it. The importance of understanding and learning from the organizational errors has recently enhanced. Learning from errors provides sustainable source of knowledge for organizations which in turn will increase the absorptive capacity of employees. High ability and motivation in employees are two important factors in absorptive capacity that facilitate knowledge transfer in organizations and improve organizational innovation. The present study investigates the relationship between learning from organizational errors, personnel absorptive capacity and organizational innovation. Managers and supervisors of pharmaceutical companies listed in Tehran Stock Exchange were selected for this survey and according to Cochran's sample size; statistical sampling was estimated at 113 people. Hypotheses were tested by structural equation modeling and regression analysis. Findings prove a positive relationship between variables. Furthermore absorptive capacity of employees plays the role of mediator between learning from organizational errors and innovation