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Learning from Failure

Author

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  • Philip R. P. Coelho

    (Department of Economics, Ball State University)

  • James E. McClure

    (Department of Economics, Ball State University)

Abstract

Failures may lead to ultimate success in both nature and business. Just as dynamic ecosystems depend on death to replace senescent organisms with vigorous growth, the termination of uneconomic activities is essential to wealth creation. This paper explores the benefits of failures, and uses aspects of the analogy between death and business failure to analyze how failures in business economize upon resources and lead to better firms and greater efficiencies. A distinguishing feature of our work is the analytic use of competitive markets to provide insights into the processes of success and failure. Recognizable patterns of business failures are discussed in an effort to provide entrepreneurs and mangers with a basis for understanding and acting upon changing circumstances.

Suggested Citation

  • Philip R. P. Coelho & James E. McClure, 2004. "Learning from Failure," Working Papers 200402, Ball State University, Department of Economics, revised Jan 2005.
    • Handle: RePEc:bsu:wpaper:200402
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    References listed on IDEAS

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    Cited by:

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    3. Gottschalk, Sandra & Greene, Francis J. & Höwer, Daniel & Müller, Bettina, 2014. "If you don't succeed, should you try again? The role of entrepreneurial experience in venture survival," ZEW Discussion Papers 14-009, ZEW - Leibniz Centre for European Economic Research.
    4. Muhammad Furqan Ashraf & Babak Mahmood & Mudassar Mushtaq, 2019. "An Empirical Study of Impediments of Entrepreneurship Failure. A Case Study of District Faisalabad, Punjab, Pakistan. (Thematic Analysis)," Global Regional Review, Humanity Only, vol. 4(1), pages 343-350, March.
    5. Niël Almero Krüger & Natanya Meyer, 2021. "The Development of a Small and Medium-Sized Business Risk Management Intervention Tool," JRFM, MDPI, vol. 14(7), pages 1-14, July.
    6. Hyo Sun Jung & Hye Hyun Yoon, 2017. "Error management culture and turnover intent among food and beverage employees in deluxe hotels: the mediating effect of job satisfaction," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 785-802, December.
    7. Cope, Jason, 2011. "Entrepreneurial learning from failure: An interpretative phenomenological analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 604-623.
    8. Nitin Pangarkar, 2009. "Do Firms Learn from Alliance Terminations? An Empirical Examination," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 982-1004, September.

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    More about this item

    Keywords

    Entrepreneurship; Business Failure; Evolution; Uncertainty; Learning from Failure;
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