IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v98y2019icp370-379.html

Do entrepreneurs always benefit from business failure experience?

Author

Listed:
  • Boso, Nathaniel
  • Adeleye, Ifedapo
  • Donbesuur, Francis
  • Gyensare, Michael

Abstract

Business failure and its effect on entrepreneurial engagement has attracted substantial scholarly attention in entrepreneurship research. We contend that knowledge is lacking on the entrepreneurial learning mechanism and entrepreneurial alertness condition under which business failure experience influences new venture performance. In an empirical examination of 240 entrepreneurs operating in multiple industries in a sub-Saharan African country, we use a longitudinal data set to show that business failure experience does not always influence new venture performance. Rather, business failure experience influences new venture performance when it is channelled through entrepreneurial learning under conditions of increasing levels of entrepreneurial learning and a greater degree of alertness to new business opportunities. We discuss these findings and provide avenues for extending this emerging area of scholarly research.

Suggested Citation

  • Boso, Nathaniel & Adeleye, Ifedapo & Donbesuur, Francis & Gyensare, Michael, 2019. "Do entrepreneurs always benefit from business failure experience?," Journal of Business Research, Elsevier, vol. 98(C), pages 370-379.
    • Handle: RePEc:eee:jbrese:v:98:y:2019:i:c:p:370-379
    DOI: 10.1016/j.jbusres.2018.01.063
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296318300699
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2018.01.063?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jenkins, Anna S. & Wiklund, Johan & Brundin, Ethel, 2014. "Individual responses to firm failure: Appraisals, grief, and the influence of prior failure experience," Journal of Business Venturing, Elsevier, vol. 29(1), pages 17-33.
    2. Johan Wiklund & Dean A. Shepherd, 2011. "Where to from Here? EO-as-Experimentation, Failure, and Distribution of Outcomes," Entrepreneurship Theory and Practice, , vol. 35(5), pages 925-946, September.
    3. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    4. Chung-Leung Luk & Oliver H M Yau & Leo Y M Sin & Alan C B Tse & Raymond P M Chow & Jenny S Y Lee, 2008. "The effects of social capital and organizational innovativeness in different institutional contexts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 589-612, June.
    5. Ucbasaran, Deniz & Westhead, Paul & Wright, Mike & Flores, Manuel, 2010. "The nature of entrepreneurial experience, business failure and comparative optimism," Journal of Business Venturing, Elsevier, vol. 25(6), pages 541-555, November.
    6. Bruton, Garry D. & Ketchen, David J. & Ireland, R. Duane, 2013. "Entrepreneurship as a solution to poverty," Journal of Business Venturing, Elsevier, vol. 28(6), pages 683-689.
    7. Ucbasaran, Deniz & Westhead, Paul & Wright, Mike, 2009. "The extent and nature of opportunity identification by experienced entrepreneurs," Journal of Business Venturing, Elsevier, vol. 24(2), pages 99-115, March.
    8. Gaglio, Connie Marie & Katz, Jerome A, 2001. "The Psychological Basis of Opportunity Identification: Entrepreneurial Alertness," Small Business Economics, Springer, vol. 16(2), pages 95-111, March.
    9. Cope, Jason, 2011. "Entrepreneurial learning from failure: An interpretative phenomenological analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 604-623.
    10. Homsma, Gert J. & Van Dyck, Cathy & De Gilder, Dick & Koopman, Paul L. & Elfring, Tom, 2009. "Learning from error: The influence of error incident characteristics," Journal of Business Research, Elsevier, vol. 62(1), pages 115-122, January.
    11. Moses Acquaah, 2012. "Social networking relationships, firm‐specific managerial experience and firm performance in a transition economy: A comparative analysis of family owned and nonfamily firms," Strategic Management Journal, Wiley Blackwell, vol. 33(10), pages 1215-1228, October.
    12. Yasuhiro Yamakawa & Melissa Cardon, 2015. "Causal ascriptions and perceived learning from entrepreneurial failure," Small Business Economics, Springer, vol. 44(4), pages 797-820, April.
    13. Corbett, Andrew C., 2007. "Learning asymmetries and the discovery of entrepreneurial opportunities," Journal of Business Venturing, Elsevier, vol. 22(1), pages 97-118, January.
    14. Garry D. Bruton & David Ahlstrom & Krzysztof Obloj, 2008. "Entrepreneurship in Emerging Economies: Where Are We Today and Where Should the Research Go in the Future," Entrepreneurship Theory and Practice, , vol. 32(1), pages 1-14, January.
    15. Yadong Luo, 2003. "Industrial dynamics and managerial networking in an emerging market: the case of China," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1315-1327, December.
    16. Daphne W Yiu & ChungMing Lau & Garry D Bruton, 2007. "International venturing by emerging economy firms: the effects of firm capabilities, home country networks, and corporate entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 519-540, July.
    17. Sam Jones & John Page & Abebe Shimeles & Finn Tarp & John Page & Måns Söderbom, 2015. "Is Small Beautiful? Small Enterprise, Aid and Employment in Africa," African Development Review, African Development Bank, vol. 27(S1), pages 44-55, October.
    18. David J. Teece, 2012. "Dynamic Capabilities: Routines versus Entrepreneurial Action," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1395-1401, December.
    19. Dean A. Shepherd & Melissa S. Cardon, 2009. "Negative Emotional Reactions to Project Failure and the Self‐Compassion to Learn from the Experience," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 923-949, September.
    20. Yasuhiro Yamakawa & Mike W. Peng & David L. Deeds, 2015. "Rising from the Ashes: Cognitive Determinants of Venture Growth after Entrepreneurial Failure," Entrepreneurship Theory and Practice, , vol. 39(2), pages 209-236, March.
    21. Raphael Kaplinsky & Mike Morris, 2009. "Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 551-569, September.
    22. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
    23. Lau, Chung Ming & Bruton, Garry D., 2011. "Strategic orientations and strategies of high technology ventures in two transition economies," Journal of World Business, Elsevier, vol. 46(3), pages 371-380, July.
    24. Dirk De Clercq & Harry J. Sapienza, 2005. "When Do Venture Capital Firms Learn from Their Portfolio Companies?," Entrepreneurship Theory and Practice, , vol. 29(4), pages 517-535, July.
    25. Yuan Lu & Lianxi Zhou & Garry Bruton & Weiwen Li, 2010. "Capabilities as a mediator linking resources and the international performance of entrepreneurial firms in an emerging economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(3), pages 419-436, April.
    26. Chong Ju Choi & Carla C. J. M. Millar & Caroline Y. L. Wong, 2005. "Knowledge and Exchange," Palgrave Macmillan Books, in: Knowledge Entanglements, chapter 0, pages 65-76, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessia Pisoni & Emanuele Aversa & Alberto Onetti, 2021. "The Role of Failure in the Entrepreneurial Process: A Systematic Literature Review," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(1), pages 1-53, August.
    2. Vazirani, Ashish & Sarkar, Subhro & Bhattacharjee, Titas & Dwivedi, Yogesh K & Jack, Sarah, 2023. "Information signals and bias in investment decisions: A meta-analytic comparison of prediction and actual performance of new ventures," Journal of Business Research, Elsevier, vol. 155(PB).
    3. Jintong Tang & David Ahlstrom & Jeffrey M. Pollack & Andrew C. Corbett, 2025. "Advancing entrepreneurial alertness research: theoretical, empirical, and Asia Pacific perspectives," Asia Pacific Journal of Management, Springer, vol. 42(1), pages 43-55, March.
    4. Donbesuur, Francis & Hultman, Magnus & Oghazi, Pejvak & Boso, Nathaniel, 2022. "External knowledge resources and new venture success in developing economies: Leveraging innovative opportunities and legitimacy strategies," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    5. Yujie Ou & Kyungyee Kim, 2025. "Integrating Psychology into Entrepreneurship Education: A Catalyst for Developing Cognitive and Emotional Skills Among College Students," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 7979-8006, June.
    6. Liu, Gordon & Zhang, Stephen X. & Ko, Wai Wai & Jahanshahi, Asghar Afshar & Chen, Yantai & John, Joshin, 2025. "Causation processes and innovation strategy in small- and medium-sized firms in emerging countries: The moderating role of founder-CEOs' human capital," Technological Forecasting and Social Change, Elsevier, vol. 212(C).
    7. Wunnam Basit Issah & Lutfa Tilat Ferdous & Faruk Bhuiyan & Taimur Sharif, 2024. "Digitalisation and environmental management activities: The effects of family ownership`," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4351-4374, July.
    8. Asif Iqbal & Mahani Binti Mohammad Abdu Shakur & Sharizal Bin Hashim & Muhammad Asif, 2025. "Entrepreneurial learning from failure: a systematic review and bibliometric analysis on its theoretical foundations, antecedents, outcomes, and an agenda for future research," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(2), pages 721-765, April.
    9. Liu, Jie & Zhang, Chuan & Chen, Hanwen, 2025. "Customer risk disclosure and supplier innovation strategy: A risk spillover perspective," Economic Modelling, Elsevier, vol. 147(C).
    10. Chao Wang & Xiu-e Zhang & Shushan Zhang & Yuan Le & Qing Li, 2024. "How to Convert Entrepreneurial Alertness into the Performance of New Ventures via Entrepreneurial Bricolage: The Moderating Effect of Environmental Dynamism," SAGE Open, , vol. 14(3), pages 21582440241, September.
    11. Jaffar Abbas & Saqlain Raza & Mohammad Nurunnabi & Mohd Sobri Minai & Shaher Bano, 2019. "The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities," Sustainability, MDPI, vol. 11(11), pages 1-28, May.
    12. Sithipolvanichgul, Juthamon & Dhir, Amandeep & Talwar, Shalini & Kaur, Puneet, 2025. "Decomposition of double-loop failure risk in post-innovation failure phase," Technovation, Elsevier, vol. 140(C).
    13. Nizar Mtibaa & Sami Boudabbous, 2023. "The Realities of Learning through Failure in Entrepreneurship: Results of Qualitative Research," International Review of Management and Marketing, Econjournals, vol. 13(2), pages 19-27, March.
    14. Adomako, Samuel & Amankwah-Amoah, Joseph & Dankwah, George Obeng & Danso, Albert & Donbesuur, Francis, 2019. "Institutional voids, international learning effort and internationalization of emerging market new ventures," Journal of International Management, Elsevier, vol. 25(4).
    15. Araujo, Clécio Falcão & Karami, Masoud & Tang, Jintong & Roldan, Lucas Bonacina & dos Santos, Julia Aita, 2023. "Entrepreneurial alertness: A meta-analysis and empirical review," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    16. Amankwah-Amoah, Joseph & Khan, Zaheer & Wood, Geoffrey, 2021. "COVID-19 and business failures: The paradoxes of experience, scale, and scope for theory and practice," European Management Journal, Elsevier, vol. 39(2), pages 179-184.
    17. Nadia Zahoor & Shlomo Tarba & Ahmad Arslan & Mohammad Faisal Ahammad & Md Imtiaz Mostafiz & Enrico Battisti, 2025. "The impact of entrepreneurial leadership and international explorative-exploitative learning on the performance of international new ventures," Asia Pacific Journal of Management, Springer, vol. 42(2), pages 1095-1129, June.
    18. Guopeng Xiang & Mixiang Peng & Xin Su, 2024. "Ambidextrous Learning, Resource Acquisition, and Venture Performance: The Moderating Effect of the Entrepreneurial Ecosystem Network Relationships," SAGE Open, , vol. 14(3), pages 21582440241, August.
    19. Tae Jun Bae & Chong Kyoon Lee & Sharon A. Simmons & Jin Young Lee, 2025. "Reflection on failure and the performance of subsequent ventures: application of reflective learning theory," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-25, December.
    20. Kalyanasundaram Ganesaraman & M. H. Bala Subrahmanya, 2022. "How Conflicts Cause Technology Startups to Fail in India? An Empirical Analysis," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 40-52, June.
    21. Yves Sourisseau & Julien Cusin & Olivier Herrbach, 2023. "Analyse des facteurs sous-jacents dans l’évolution des attributions causales de l’échec entrepreneurial : une étude longitudinale dans un contexte de réintégration," Post-Print hal-04412627, HAL.
    22. Merendino, Alessandro & Sarens, Gerrit, 2020. "Crisis? What crisis? Exploring the cognitive constraints on boards of directors in times of uncertainty," Journal of Business Research, Elsevier, vol. 118(C), pages 415-430.
    23. Pindard-Lejarraga, Maud & Lejarraga, José, 2024. "Information source and entrepreneurial performance expectations: Experience-based versus description-based opportunity evaluations," Journal of Business Research, Elsevier, vol. 172(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yasuhiro Yamakawa & Melissa Cardon, 2015. "Causal ascriptions and perceived learning from entrepreneurial failure," Small Business Economics, Springer, vol. 44(4), pages 797-820, April.
    2. Vivianna Fang He & Charlotta Sirén & Sheetal Singh & George Solomon & Georg von Krogh, 2018. "Keep Calm and Carry On: Emotion Regulation in Entrepreneurs’ Learning from Failure," Entrepreneurship Theory and Practice, , vol. 42(4), pages 605-630, July.
    3. Boso, Nathaniel & Story, Vicky M. & Cadogan, John W., 2013. "Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy," Journal of Business Venturing, Elsevier, vol. 28(6), pages 708-727.
    4. Hongxin Wang & Wenqing Wu & Chenjian Zhang, 2025. "Bouncing back from failure: Digital technology capability, entrepreneurial alertness, and reentry intention," Asia Pacific Journal of Management, Springer, vol. 42(1), pages 197-232, March.
    5. Liu, Yiran & Li, Yong & Hao, Xiling & Zhang, Yuli, 2019. "Narcissism and learning from entrepreneurial failure," Journal of Business Venturing, Elsevier, vol. 34(3), pages 496-512.
    6. Asif Iqbal & Mahani Binti Mohammad Abdu Shakur & Sharizal Bin Hashim & Muhammad Asif, 2025. "Entrepreneurial learning from failure: a systematic review and bibliometric analysis on its theoretical foundations, antecedents, outcomes, and an agenda for future research," Quality & Quantity: International Journal of Methodology, Springer, vol. 59(2), pages 721-765, April.
    7. Adesuwa Omorede, 0. "Managing crisis: a qualitative lens on the aftermath of entrepreneurial failure," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-28.
    8. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Does entrepreneurship ecosystem influence business re-entries after failure?," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 211-227, March.
    9. Costa, Paula L. & Ferreira, João J. & Torres de Oliveira, Rui, 2023. "From entrepreneurial failure to re-entry," Journal of Business Research, Elsevier, vol. 158(C).
    10. Song Lin & Yasuhiro Yamakawa & Jing Li, 2019. "Emergent learning and change in strategy: empirical study of Chinese serial entrepreneurs with failure experience," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 773-792, September.
    11. Adesuwa Omorede, 2021. "Managing crisis: a qualitative lens on the aftermath of entrepreneurial failure," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1441-1468, September.
    12. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Do emerging ecosystems and individual capitals matter in entrepreneurial re-entry’ quality and speed?," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1131-1158, September.
    13. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    14. Rohny Saylors & Amrita Lahiri & Benjamin Warnick & Chandresh Baid, 2023. "Looking Back To Venture Forward: Exploring Idea and Identity Work in Public Failure Narratives," Entrepreneurship Theory and Practice, , vol. 47(2), pages 398-429, March.
    15. Anna Jenkins, 2022. "Understanding Entrepreneurial Failure: Conceptualizing Failure, Taking Stock, and Broadening the Scope of Failure Research," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 18(3), pages 159-211, March.
    16. 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.
    17. Amankwah-Amoah, Joseph & Adomako, Samuel & Berko, Damoah Obi, 2022. "Once bitten, twice shy? The relationship between business failure experience and entrepreneurial collaboration," Journal of Business Research, Elsevier, vol. 139(C), pages 983-992.
    18. Khelil, Nabil, 2016. "The many faces of entrepreneurial failure: Insights from an empirical taxonomy," Journal of Business Venturing, Elsevier, vol. 31(1), pages 72-94.
    19. Tae Jun Bae & Chong Kyoon Lee & Sharon A. Simmons & Jin Young Lee, 2025. "Reflection on failure and the performance of subsequent ventures: application of reflective learning theory," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-25, December.
    20. Huatao Peng & Chen Zhou & Yang Liu, 2020. "Entrepreneurial Experience and Performance: From the Aspect of Sustainable Growth of Enterprises," Sustainability, MDPI, vol. 12(18), pages 1-24, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:98:y:2019:i:c:p:370-379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.