How Do Firms' Innovation Failures Affect the Quality of Subsequent Innovations? The Contingency Role of Knowledge Breadth and Depth

IF 2.5 3区经济学 Q2 ECONOMICS

Managerial and Decision Economics Pub Date : 2024-11-08 DOI:10.1002/mde.4431

Guocai Chen, Jing Xiao, Tongying Liang

引用次数: 0

Abstract

Drawing on organizational learning theory and knowledge-based view, this study investigates the relationship between firms' innovation failures and the quality of subsequent innovations. We find an inverted U-shaped relationship between innovation failures and the quality of subsequent innovations. We theoretically decompose the curvilinear effects of innovation failures on the quality of subsequent innovations into two underlying counteracting forces: the positive impact of learning from innovation failures (LFIF) and the negative impact of survival pressures. Furthermore, firms' knowledge breadth and depth flatten the inverted U-shaped curve. Our findings reveal the risks and benefits of LFIF.

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来源期刊

Managerial and Decision Economics Multiple-

CiteScore

1.40

自引率

18.20%

发文量

242

期刊介绍： Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.