The influence of Forgiveness Climate on Firm’s Overall Performance: The mediating role of Positive Psychological capital, Organizational Citizenship Behavior, Job Satisfaction, Employee Performance.

Abstract

Forgiveness climate has been identified as a key component for positive employee performance, job satisfaction and organizational citizenship behavior. Therefore, it is crucial to investigate that how forgiveness climate can influence firm‘s overall performance. Although different studies are available on forgiveness climate, there is no adequate research examining the mechanism between forgiveness climate and firm‘s overall performance. Linking these two areas of research for the first time, this current study examines the influence of forgiveness climate on firm‘s overall performance through positive psychological climate, organizational citizenship behavior, job satisfaction and employee performance as mediators. Using quantitative data collected from 408 service provider employees, this study revealed that employee perceptions of forgiveness climate was significantly positively related to firm‘s overall performance. Specifically, the results demonstrated the mediating effect those mentioned variables between forgiveness climate and firm‘s overall performance. The findings suggest that organizations should promote forgiveness climate to enhance firm‘s overall performance.