A Moderated Mediation Model Linking Authentic Leadership and Preoccupation with Failure

Preoccupation with failure comprises one of the fundamental principles of high-reliability organisations (HROs). Nonetheless, literature is sparse regarding its antecedents, even though preoccupation with failure can promote continuous improvement and resilience to possible future crises. Using social exchange theory (SET), this chapter attempts to contribute to this gap by investigating the underlying mechanisms and boundary conditions of the authentic leadership-preoccupation with failure relationship. In particular, this chapter underlines psychological safety as a mediator and supervisor organisational embodiment (SOE) as a boundary condition in this relationship. Data from a diverse sample of 329 US employees supported the positive relationship between authentic leadership and preoccupation with failure via psychological safety. As such, the findings provide novel insights and highlight the critical role that authentic leadership may play in determining preoccupation with failure. Another novelty of the present study is that it tested the interaction of authentic leadership with SOE in predicting psychological safety. In doing so, it demonstrated that authentic leaders with a high SOE have a more significant effect on psychological safety than leaders with low SOE, expanding prior empirical research and providing theoretical and practical implications.