Can compassion drive firm innovativeness through organizational trust?

Purpose This paper addresses the escalating issue of suffering within organizations, emphasizing the pivotal role of compassion in mitigating the detrimental impacts of workplace suffering and enhancing the mental well-being of employees. Contrary to existing literature that has primarily focused on individual well-being, we propose to explore the broader organizational implications of compassion, specifically its influence on innovativeness. Design/methodology/approach To investigate the intricate relationship between organizational compassion and firm innovativeness, we employ a structural equation model. Our study encompasses a sample of Spanish companies spanning various sectors. A key element in our analysis is the inclusion of organizational trust as a mediator, aiming to elucidate how compassion at work might impact firm innovativeness through this intermediary variable. Findings The results of our study demonstrate a positive correlation between compassion at work and firm innovativeness. Moreover, we reveal that the influence of organizational compassion on innovativeness is mediated by organizational trust. This indirect pathway underscores the significance of trust in translating compassionate workplace practices into enhanced firm innovativeness. Originality/value This research contributes to the existing literature by offering a novel perspective on how organizational compassion drives innovation. Specifically, it demonstrates that compassion enhances firm innovativeness both directly and indirectly through the mediating role of organizational trust. By doing so, the study bridges emotional and strategic dimensions within organizational processes – an integration rarely addressed in prior research. While previous studies have primarily focused on the benefits of compassion for individual well-being, this paper shifts the focus to its broader organizational implications, particularly its impact on innovation outcomes. This expanded lens advances the academic discourse on compassionate practices by emphasizing their relevance not only for employee care, but also for enhancing strategic performance.