Innovation failure, technology commercialization, and ambidexterity: Translating failure into success

Drawing on organizational learning theory and the ambidexterity framework, this study investigates how firms transform innovation failure into successful technology commercialization. While previous research has explored various consequences of failure, the mechanisms through which firms navigate such setbacks under conditions of high uncertainty remain insufficiently explored. We demonstrate that innovation failure induces two complementary organizational responses: (1) exploitative product development, which mitigates risk and leverages existing knowledge, and (2) explorative product development, which fosters novel solutions and expands domain knowledge. These dual pathways jointly enhance the likelihood of successful commercialization. Our findings make three key contributions: they enrich the literature on learning from innovation failure by uncovering distinct yet interconnected learning trajectories emerging from setbacks; extend ambidexterity research by revealing how failure functions as a catalyst for ambidextrous behavior; and advance organizational learning theory by demonstrating how failure activates double-loop learning processes. In doing so, this study provides a nuanced understanding of the dynamic pathways through which firms transform setbacks into innovation success.