Wolfgang Lattacher, Malgorzata Anna Wdowiak, Erich J. Schwarz and David B. Audretsch
The paper follows Jason Cope's (2011) vision of a holistic perspective on the failure-based learning process. By analyzing the research since Cope's first attempt, which is often…
Abstract
Purpose
The paper follows Jason Cope's (2011) vision of a holistic perspective on the failure-based learning process. By analyzing the research since Cope's first attempt, which is often fragmentary in nature, and providing novel empirical insights, the paper aims to draw a new comprehensive picture of all five phases of entrepreneurial learning and their interplay.
Design/methodology/approach
The study features an interpretative phenomenological analysis of in-depth interviews with 18 failed entrepreneurs. Findings are presented and discussed in line with experiential learning theory and Cope's conceptual framework of five interrelated learning timeframes spanning from the descent into failure until re-emergence.
Findings
The study reveals different patterns of how entrepreneurs experience failure, ranging from abrupt to gradual descent paths, different management and coping behaviors, and varying learning effects depending on the new professional setting (entrepreneurial vs non-entrepreneurial). Analyzing the entrepreneurs' experiences throughout the process shows different paths and connections between individual phases. Findings indicate that the learning timeframes may overlap, appear in different orders, loop, or (partly) stay absent, indicating that the individual learning process is even more dynamic and heterogeneous than hitherto known.
Originality/value
The paper contributes to the field of entrepreneurial learning from failure, advancing Cope's seminal work on the learning process and -contents by providing novel empirical insights and discussing them in the light of recent scientific findings. Since entrepreneurial learning from failure is a complex and dynamic process, using a holistic lens in the analysis contributes to a better understanding of this phenomenon as an integrated whole.
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Keywords
Wolfgang Lattacher and Malgorzata Anna Wdowiak
Failure plays a pivotal role in entrepreneurial learning. Knowledge of the learning process that enables an entrepreneur to re-emerge stronger after a failure, though…
Abstract
Purpose
Failure plays a pivotal role in entrepreneurial learning. Knowledge of the learning process that enables an entrepreneur to re-emerge stronger after a failure, though considerable, is fragmented. This paper systematically collects relevant literature, assigns it to the stages of the experiential learning process (concrete experience, reflective observation, abstract conceptualization, active experimentation; Kolb, 1984), evaluates the research coverage of each stage and identifies promising avenues for future research.
Design/methodology/approach
This systematic literature review follows the guidelines articulated by Short (2009) and Tranfield et al. (2003), using Web of Science and EBSCO as primary data sources. Kolb’s (1984) experiential learning theory provides a basis for organizing the identified material into a framework of entrepreneurial learning from failure.
Findings
The literature provides insights on all stages of the process of entrepreneurial learning from failure. Particularly well elaborated are the nature of failure and its triggering effect for reflection, the factors influencing reflection, the contents of the resulting learning and their application in entrepreneurial re-emergence. Other topics remain under-researched, including alternative modes of recovery, the impact of personal attributes upon reflection, the cognitive processes underlying reflection, the transformation of failure-based observations into logically sound concepts and the application of this learning in non-entrepreneurial contexts.
Originality/value
This review provides the most complete overview of research into the process of entrepreneurial learning from failure. The systematic, theory-based mapping of this literature takes stock of current knowledge and proposes areas for future research.
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Craig S. Galbraith and Curt H. Stiles
The first paper by Hernando de Soto is titled, “Trust, Institutions and Entrepreneurship.” Hernando de Soto certainly needs no introduction. As the author of two best-selling…
Abstract
The first paper by Hernando de Soto is titled, “Trust, Institutions and Entrepreneurship.” Hernando de Soto certainly needs no introduction. As the author of two best-selling books, The Other Path and The Mystery of Capital, and the founder of the Institute for Liberty and Democracy in Peru, Hernando de Soto has made his mark on examining critical issues related to economic development among poor people. In 1999, Time magazine chose Hernando de Soto as one of the five leading Latin American innovators of the century. Forbes magazine highlighted him as one of 15 innovators “who will re-invent your future.” The Economist magazine identified his Institute for Liberty and Democracy as one of the top two think tanks in the world. The essay in this volume, based upon a speech given at the University of North Carolina on October 26, 2004, examines the important relationships between institutions, trust, property rights, and the ability of entrepreneurs to participate in economic growth and development. This stimulating essay sets a foundation for much of what is discussed in this volume.