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How Corporate Entrepreneurs Learn from Fledgling Innovation Initiatives: Cognition and the Development of a Termination Script

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  • Andrew C. Corbett
  • Heidi M. Neck
  • Dawn R. DeTienne

Abstract

Through a parallel examination of literatures on new product development termination and entrepreneurial cognition, this study explores a specific form of human capital development: learning from failure. Specifically we advance the literature on entrepreneurial human capital by linking cognitive scripts used by corporate entrepreneurs in project termination decisions to corresponding levels of learning. Our longitudinal investigation of technology–based firms suggests that corporate entrepreneurs use three types of termination scripts: (1) undisciplined termination, (2) strategic termination, and (3) innovation drift. We illustrate the presence of each script and analyze learning implications during innovation projects (action learning) and after termination (post–performance learning). Based on our analysis we suggest that organizational learning is dependent upon the type of termination script individuals employ.

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  • Andrew C. Corbett & Heidi M. Neck & Dawn R. DeTienne, 2007. "How Corporate Entrepreneurs Learn from Fledgling Innovation Initiatives: Cognition and the Development of a Termination Script," Entrepreneurship Theory and Practice, , vol. 31(6), pages 829-852, November.
    • Handle: RePEc:sae:entthe:v:31:y:2007:i:6:p:829-852
    DOI: 10.1111/j.1540-6520.2007.00208.x
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    Cited by:

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    2. Sara Sassetti & Giacomo Marzi & Vincenzo Cavaliere & Cristiano Ciappei, 2018. "Entrepreneurial cognition and socially situated approach: a systematic and bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1675-1718, September.
    3. Anisur R. Faroque & Farhad Uddin Ahmed & Mahabubur Rahman & Mohammad Osman Gani & Sina Mortazavi, 2023. "Exploring the individual and joint effects of founders' and managers' experiential knowledge on international opportunity identification," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1274-1300, September.
    4. AFAWUBO, Komivi & NOGLO, Yawo Agbényégan, 2022. "ICT and entrepreneurship: A comparative analysis of developing, emerging and developed countries," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    5. Khalil Rhaiem & Nabil Amara, 2021. "Learning from innovation failures: a systematic review of the literature and research agenda," Review of Managerial Science, Springer, vol. 15(2), pages 189-234, February.
    6. Vincent Van Roy & Daniel Nepelski, 2016. "Assessment of Framework Conditions for the Creation and Growth of Firms in Europe," JRC Research Reports JRC103350, Joint Research Centre.
    7. Judith Behrens & Holger Patzelt, 2016. "Corporate Entrepreneurship Managers’ Project Terminations: Integrating Portfolio–Level, Individual–Level, and Firm–Level Effects," Entrepreneurship Theory and Practice, , vol. 40(4), pages 815-842, July.
    8. Marcus T. Wolfe & Dean A. Shepherd, 2015. "What do you have to Say about That? Performance Events and Narratives’ Positive and Negative Emotional Content," Entrepreneurship Theory and Practice, , vol. 39(4), pages 895-925, July.
    9. Vassallo, Jarrod P. & Banerjee, Sourindra & Zaman, Hasanuzzaman & Prabhu, Jaideep C., 2023. "Design thinking and public sector innovation: The divergent effects of risk-taking, cognitive empathy and emotional empathy on individual performance," Research Policy, Elsevier, vol. 52(6).
    10. Vincent Van Roy & Daniel Nepelski, 2017. "Determinants of high-tech entrepreneurship in Europe," JRC Research Reports JRC104865, Joint Research Centre.
    11. Matthew R. Marvel & Justin L. Davis & Curtis R. Sproul, 2016. "Human Capital and Entrepreneurship Research: A Critical Review and Future Directions," Entrepreneurship Theory and Practice, , vol. 40(3), pages 599-626, May.
    12. Patzelt, Holger & Gartzia, Leire & Wolfe, Marcus T. & Shepherd, Dean A., 2021. "Managing negative emotions from entrepreneurial project failure: When and how does supportive leadership help employees?," Journal of Business Venturing, Elsevier, vol. 36(5).
    13. Jenkins, Anna & McKelvie, Alexander, 2017. "Is this the end? Investigating firm and individual level outcomes post-failure," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 138-143.
    14. Erkko Autio & Gerard George & Oliver Alexy, 2011. "International Entrepreneurship and Capability Development—Qualitative Evidence and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 35(1), pages 11-37, January.
    15. Patzelt, Holger & Behrens, Judith & Wolfe, Marcus T. & Shepherd, Dean A., 2020. "Perceived project transition support and employees' assessments of entrepreneurial project performance," Journal of Business Venturing, Elsevier, vol. 35(1).
    16. Sahasranamam, Sreevas & Nandakumar, M.K. & Pereira, Vijay & Temouri, Yama, 2021. "Knowledge capital in social and commercial entrepreneurship: Investigating the role of informal institutions," Journal of International Management, Elsevier, vol. 27(1).
    17. Lutz Göcke & Kristina Hülsebusch & Matthias Menter, 2022. "The legitimacy of corporate entrepreneurship: a structured literature review," Management Review Quarterly, Springer, vol. 72(2), pages 385-416, June.
    18. Kuckertz, Andreas & Bulut, Cagri & Brändle, Leif, 2024. "Unobserved heterogeneity in firm performance: The alignment of entrepreneurial orientation and organizational error management culture," Journal of Business Research, Elsevier, vol. 179(C).
    19. Cuijpers, Maarten & Guenter, Hannes & Hussinger, Katrin, 2011. "Costs and benefits of inter-departmental innovation collaboration," Research Policy, Elsevier, vol. 40(4), pages 565-575, May.
    20. 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.
    21. Danneels, Erwin & Vestal, Alex, 2020. "Normalizing vs. analyzing: Drawing the lessons from failure to enhance firm innovativeness," Journal of Business Venturing, Elsevier, vol. 35(1).
    22. Cardon, Melissa S. & Stevens, Christopher E. & Potter, D. Ryland, 2011. "Misfortunes or mistakes?: Cultural sensemaking of entrepreneurial failure," Journal of Business Venturing, Elsevier, vol. 26(1), pages 79-92, January.
    23. Orla Byrne & Dean A. Shepherd, 2015. "Different Strokes for Different Folks: Entrepreneurial Narratives of Emotion, Cognition, and Making Sense of Business Failure," Entrepreneurship Theory and Practice, , vol. 39(2), pages 375-405, March.

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