The Impact of Learning From Failure on New Ventures’ Sustainable Development

Ekaterina Shirshitskaia · Xue Mei Zhou · Ling Zhang

12 citations0/0 files storedFrontiers in Psychology

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Entrepreneurship Studies and Influences Business Strategies and Innovation Innovation and Knowledge Management

Abstract

How to absorb failure experiences to achieve reunification and turn crises into opportunities is crucial for enterprises. We examine the effect of learning from failure on new ventures' sustainable development from the lens of resource orchestration theory. With 193 samples of entrepreneurs in Mainland China, this study provides the first quantitative evidence regarding how learning from failure influences new ventures' sustainable development through entrepreneurial dynamic capability and strategic decision comprehensiveness. Stepwise regression analysis results show that learning from failure has a positive impact on the entrepreneurial dynamic capability and strategic decision comprehensiveness. Entrepreneurial dynamic capability and strategic decision comprehensiveness positively influence new ventures' sustainable development, and exert mediating roles between learning from failure and new ventures' sustainable development.

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2007Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance 1998The partial least squares approach for structural equation modeling.2002Deliberate Learning and the Evolution of Dynamic Capabilities 1998Modern Methods for Business Research 1991A Conceptual Model of Entrepreneurship as Firm Behavior 2007Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black Box 2003Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses 2002A theory of entrepreneurial opportunity identification and development

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