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Do organizations have to change to learn? Examining the effects of technological change and learning from failures in the natural gas distribution industry

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  • Vinit Desai

Abstract

Failures contain valuable information. However, organizations vary at learning from them. I ask whether failures prompt organizations to make technological investments, and whether these investments help boost performance beyond improvements gained through direct organizational learning. I test hypotheses on natural gas distributors to determine whether they enhance their performance by learning directly, by recognizing failures as prompts to invest in safer technologies, or through a combination. Results suggest that distributors learn directly, though firms, which also invest in related technologies, are able to gain some additional benefits. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

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  • Vinit Desai, 2010. "Do organizations have to change to learn? Examining the effects of technological change and learning from failures in the natural gas distribution industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(3), pages 713-739, June.
    • Handle: RePEc:oup:indcch:v:19:y:2010:i:3:p:713-739
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    Cited by:

    1. Roper, Stephen & Bourke, Jane, 2022. "Innovating into trouble: When innovation leads to customer complaints," Research Policy, Elsevier, vol. 51(10).
    2. Amankwah-Amoah, Joseph & Hinson, Robert E. & Honyenuga, Ben & Lu, Yingfa, 2019. "Accounting for the transitions after entrepreneurial business failure: An emerging market perspective," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 148-158.
    3. Montserrat Manzaneque & Alfonso A. Rojo-Ramírez & Julio Diéguez-Soto & Maria J. Martínez-Romero, 2020. "How negative aspiration performance gaps affect innovation efficiency," Small Business Economics, Springer, vol. 54(1), pages 209-233, January.
    4. Leoncini, Riccardo, 2016. "Learning-by-failing. An empirical exercise on CIS data," Research Policy, Elsevier, vol. 45(2), pages 376-386.
    5. Tortorella, Guilherme Luz & Cawley Vergara, Alejandro Mac & Garza-Reyes, Jose Arturo & Sawhney, Rapinder, 2020. "Organizational learning paths based upon industry 4.0 adoption: An empirical study with Brazilian manufacturers," International Journal of Production Economics, Elsevier, vol. 219(C), pages 284-294.
    6. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2020. "Wearing failure as a path to innovation," Journal of Business Research, Elsevier, vol. 120(C), pages 195-202.
    7. Ramona PERGEL & Alexandros G. PSYCHOGIOS, 2013. "Making Sense of Crisis: Cognitive Barriers of Learning in Critical Situations," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 1(2), pages 179-205, August.

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