Organizational Learning From Failure

This chapter reviews past and present theoretical perspectives on organizational learning from failure. We begin by describing the organizational learning process and what it means to learn through failure. We outline and describe several challenges for future research: (1) Why do some organizations fail to learn from failures? (2) Why do some organizations fail again after learning from failures? (3) How do some organizations prevent other organizations from learning vicariously through their failures? (4) How can organizations learn from near failures? and (5) How can organizations learn from hypothetical failures? In sum, we hope this chapter motivates and inspires researchers to uncover new perspectives, deepen our understanding of, and pursue future inquiries into organizational failures and learning-based reactions to these failures.