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Generative work relationships as a source of direct and indirect learning from experiences of failure: Implications for innovation agility and product innovation

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  • Carmeli, Abraham
  • Dothan, Ari

Abstract

Organizations often experience failures when managing complex innovation projects. While experiences of failure can often lead to frustration and create a downward spiral, they are also a vital source for organizations to develop new knowledge and enhance innovation. This, however, depends on their capacity to learn from these experiences. Research indicates that organizations do not learn all they can from failures. This study implemented a micro-relational perspective and examines whether and why generative work relationships help facilitate both direct and indirect learning from experiences of failure and how these learning modes influence the innovation of small organizations. Multi-source data from 63 software firms in the ICT sector show that generative work relationships facilitate both modes of learning from failures. However, only learning from direct experiences of failure facilitates innovation agility, whereas vicarious learning from failure enhances product innovation (patent) outcomes. The implications for a micro-relational view of organizational learning and innovation are discussed.

Suggested Citation

  • Carmeli, Abraham & Dothan, Ari, 2017. "Generative work relationships as a source of direct and indirect learning from experiences of failure: Implications for innovation agility and product innovation," Technological Forecasting and Social Change, Elsevier, vol. 119(C), pages 27-38.
    • Handle: RePEc:eee:tefoso:v:119:y:2017:i:c:p:27-38
    DOI: 10.1016/j.techfore.2017.03.007
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    Cited by:

    1. Troise, Ciro & Corvello, Vincenzo & Ghobadian, Abby & O'Regan, Nicholas, 2022. "How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    2. Rhaiem, Khalil & Halilem, Norrin, 2023. "The worst is not to fail, but to fail to learn from failure: A multi-method empirical validation of learning from innovation failure," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. Palmié, Maximilian & Rüegger, Stephanie & Parida, Vinit, 2023. "Microfoundations in the strategic management of technology and innovation: Definitions, systematic literature review, integrative framework, and research agenda," Journal of Business Research, Elsevier, vol. 154(C).
    4. Justyna Wiktorowicz & Izabela Warwas & Dariusz Turek & Iwa Kuchciak, 2022. "Does generativity matter? A meta-analysis on individual work outcomes," European Journal of Ageing, Springer, vol. 19(4), pages 977-995, December.
    5. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris & Thrassou, Alkis & Ghosh, Soumya Kanti, 2021. "Adoption of artificial intelligence-integrated CRM systems in agile organizations in India," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    6. F. Landini & C. Franco, 2020. "Organizational Drivers of Innovation: The Role of Workforce Agility," Economics Department Working Papers 2020-EP01, Department of Economics, Parma University (Italy).
    7. Mathiyazhagan, Kaliyan & Agarwal, Vernika & Appolloni, Andrea & Saikouk, Tarik & Gnanavelbabu, A, 2021. "Integrating lean and agile practices for achieving global sustainability goals in Indian manufacturing industries," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    8. Khalil Rhaiem & Nabil Amara, 2021. "Learning from innovation failures: a systematic review of the literature and research agenda," Review of Managerial Science, Springer, vol. 15(2), pages 189-234, February.
    9. Abdol Majid Saadat Nezhad & Tahmoures Sohrabi & Nasrollah Shadnoosh & Abbas Toloie Eshlaghy, 2017. "A New Approach to Challenges of Venture Capital in Financing the Industrial Clusters through Cooperative Models and Venture Funds in Iran," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 111-119.
    10. Hadjielias, Elias & Christofi, Michael & Christou, Prokopis & Hadjielia Drotarova, Maria, 2022. "Digitalization, agility, and customer value in tourism," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    11. Zhuang Xiong & Pengju Wang & Chengxia Wu, 2022. "How to encourage innovation failure knowledge sharing in virtual research organization: an incentive mechanism based on game theory," Computational and Mathematical Organization Theory, Springer, vol. 28(3), pages 193-213, September.
    12. Franco, Chiara & Landini, Fabio, 2022. "Organizational drivers of innovation: The role of workforce agility," Research Policy, Elsevier, vol. 51(2).
    13. Abraham Carmeli & Ari Dothan & Dev Kumar Boojihawon, 2020. "Resilience of sustainability‐oriented and financially‐driven organizations," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 154-169, January.

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