How Do Firms' Innovation Failures Affect the Quality of Subsequent Innovations? The Contingency Role of Knowledge Breadth and Depth

How Do Firms' Innovation Failures Affect the Quality of Subsequent Innovations? The Contingency Role of Knowledge Breadth and Depth

Drawing on organizational learning theory and knowledge‐based view, this study investigates the relationship between firms' innovation failures and the quality of subsequent innovations. We find an inverted U‐shaped relationship between innovation failures and the quality of subsequent innovati...

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Veröffentlicht in:Managerial and decision economics 2024-11
Hauptverfasser: Chen, Guocai, Xiao, Jing, Liang, Tongying
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container_title Managerial and decision economics
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creator Chen, Guocai
Xiao, Jing
Liang, Tongying
description Drawing on organizational learning theory and knowledge‐based view, this study investigates the relationship between firms' innovation failures and the quality of subsequent innovations. We find an inverted U‐shaped relationship between innovation failures and the quality of subsequent innovations. We theoretically decompose the curvilinear effects of innovation failures on the quality of subsequent innovations into two underlying counteracting forces: the positive impact of learning from innovation failures (LFIF) and the negative impact of survival pressures. Furthermore, firms' knowledge breadth and depth flatten the inverted U‐shaped curve. Our findings reveal the risks and benefits of LFIF.
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title How Do Firms' Innovation Failures Affect the Quality of Subsequent Innovations? The Contingency Role of Knowledge Breadth and Depth
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