IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/vyid10.1007_s11365-020-00655-0.html
   My bibliography  Save this article

Managing crisis: a qualitative lens on the aftermath of entrepreneurial failure

Author

Listed:
  • Adesuwa Omorede

    (Mälardalen University)

Abstract

Every entrepreneur faces barriers when they engage in entrepreneurial activities and for every entrepreneur, their utmost goal is to succeed d in their endeavors. However, some entrepreneurial ventures fail due to several factors. After the failure, the entrepreneur either relapses or seeks for new entrepreneurial opportunities. The present study conducts a qualitative research synthesis to examine what happens after the occurrence of firm failure and how entrepreneurs manage the experiences from failure. In doing so, the present study analyses already published qualitative studies on failure by conducting a literature search from several electronic databases to capture the qualitative studies published under failure. After the elimination of irrelevant data, 21 relevant articles were identified. The identified articles were analyzed using meta ethnography and grounded formal theory to elaborate on three overarching concepts – the experience and cost of failure, the impact from failure and the outcome of failure. The findings from these analyzed qualitative research offers insight into the ongoing discussions on entrepreneurial failure by identifying recurrent themes and concepts as well as by presenting a conceptual model that describes the entrepreneur’s experiences from failure and how they manage these firm failures. The findings also provide avenues on how future research can contribute to the discussion on failure.

Suggested Citation

  • Adesuwa Omorede, 0. "Managing crisis: a qualitative lens on the aftermath of entrepreneurial failure," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-28.
    • Handle: RePEc:spr:intemj:v::y::i::d:10.1007_s11365-020-00655-0
    DOI: 10.1007/s11365-020-00655-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-020-00655-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-020-00655-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jenkins, Anna S. & Wiklund, Johan & Brundin, Ethel, 2014. "Individual responses to firm failure: Appraisals, grief, and the influence of prior failure experience," Journal of Business Venturing, Elsevier, vol. 29(1), pages 17-33.
    2. Grace Walsh, 2017. "Re-entry Following Firm Failure: Nascent Technology Entrepreneurs’ Tactics for Avoiding and Overcoming Stigma," Palgrave Advances in Economics of Innovation and Technology, in: James A. Cunningham & Conor O'Kane (ed.), Technology-Based Nascent Entrepreneurship, chapter 0, pages 95-117, Palgrave Macmillan.
    3. Singh, Smita & Corner, Patricia & Pavlovich, Kathryn, 2007. "Coping with entrepreneurial failure," Journal of Management & Organization, Cambridge University Press, vol. 13(4), pages 331-344, November.
    4. Mantere, Saku & Aula, Pekka & Schildt, Henri & Vaara, Eero, 2013. "Narrative attributions of entrepreneurial failure," Journal of Business Venturing, Elsevier, vol. 28(4), pages 459-473.
    5. Maria Minniti & William Bygrave, 2001. "A Dynamic Model of Entrepreneurial Learning," Entrepreneurship Theory and Practice, , vol. 25(3), pages 5-16, April.
    6. Ucbasaran, Deniz & Westhead, Paul & Wright, Mike & Flores, Manuel, 2010. "The nature of entrepreneurial experience, business failure and comparative optimism," Journal of Business Venturing, Elsevier, vol. 25(6), pages 541-555, November.
    7. Jason Cope & Frank Cave & Sue Eccles, 2004. "Attitudes of venture capital investors towards entrepreneurs with previous business failure," Venture Capital, Taylor & Francis Journals, vol. 6(2-3), pages 147-172, February.
    8. DeTienne, Dawn R., 2010. "Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development," Journal of Business Venturing, Elsevier, vol. 25(2), pages 203-215, March.
    9. 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.
    10. 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.
    11. Cope, Jason, 2011. "Entrepreneurial learning from failure: An interpretative phenomenological analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 604-623.
    12. Saku Mantere & Pekka Aula & Henri A. Schildt & Eero Vaara, 2013. "Narrative attributions of entrepreneurial failure," Post-Print hal-02313027, HAL.
    13. Yasuhiro Yamakawa & Melissa Cardon, 2015. "Causal ascriptions and perceived learning from entrepreneurial failure," Small Business Economics, Springer, vol. 44(4), pages 797-820, April.
    14. Hayward, Mathew L.A. & Forster, William R. & Sarasvathy, Saras D. & Fredrickson, Barbara L., 2010. "Beyond hubris: How highly confident entrepreneurs rebound to venture again," Journal of Business Venturing, Elsevier, vol. 25(6), pages 569-578, November.
    15. Mandl, Christoph & Berger, Elisabeth S.C. & Kuckertz, Andreas, 2016. "Do you plead guilty? Exploring entrepreneurs’ sensemaking-behavior link after business failure," Journal of Business Venturing Insights, Elsevier, vol. 5(C), pages 9-13.
    16. Carl M. Larson & Ronald C. Clute, 1979. "The Failure Syndrome," Entrepreneurship Theory and Practice, , vol. 4(2), pages 35-43, October.
    17. Dean A. Shepherd & Melissa S. Cardon, 2009. "Negative Emotional Reactions to Project Failure and the Self‐Compassion to Learn from the Experience," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 923-949, September.
    18. Suddaby, Roy & Bruton, Garry D. & Si, Steven X., 2015. "Entrepreneurship through a qualitative lens: Insights on the construction and/or discovery of entrepreneurial opportunity," Journal of Business Venturing, Elsevier, vol. 30(1), pages 1-10.
    19. Shepherd, Dean A. & Wiklund, Johan & Haynie, J. Michael, 2009. "Moving forward: Balancing the financial and emotional costs of business failure," Journal of Business Venturing, Elsevier, vol. 24(2), pages 134-148, March.
    20. Shepherd, Dean A. & Douglas, Evan J. & Shanley, Mark, 2000. "New venture survival: Ignorance, external shocks, and risk reduction strategies," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 393-410.
    21. Shepherd, Dean A., 2009. "Grief recovery from the loss of a family business: A multi- and meso-level theory," Journal of Business Venturing, Elsevier, vol. 24(1), pages 81-97, January.
    22. Singh, Smita & Corner, Patricia Doyle & Pavlovich, Kathryn, 2015. "Failed, not finished: A narrative approach to understanding venture failure stigmatization," Journal of Business Venturing, Elsevier, vol. 30(1), pages 150-166.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rosa Caiazza & Phillip Phan & Erik Lehmann & Henry Etzkowitz, 2021. "An absorptive capacity-based systems view of Covid-19 in the small business economy," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1419-1439, September.
    2. Yang Fuming & WeiLun Huang & Liu Xiaojing, 2022. "Micro- and small-sized enterprises’ willingness to borrow via internet financial services during coronavirus disease 2019," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 191-216, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adesuwa Omorede, 2021. "Managing crisis: a qualitative lens on the aftermath of entrepreneurial failure," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1441-1468, September.
    2. Vivianna Fang He & Charlotta Sirén & Sheetal Singh & George Solomon & Georg von Krogh, 2018. "Keep Calm and Carry On: Emotion Regulation in Entrepreneurs’ Learning from Failure," Entrepreneurship Theory and Practice, , vol. 42(4), pages 605-630, July.
    3. Rohny Saylors & Amrita Lahiri & Benjamin Warnick & Chandresh Baid, 2023. "Looking Back To Venture Forward: Exploring Idea and Identity Work in Public Failure Narratives," Entrepreneurship Theory and Practice, , vol. 47(2), pages 398-429, March.
    4. Khelil, Nabil, 2016. "The many faces of entrepreneurial failure: Insights from an empirical taxonomy," Journal of Business Venturing, Elsevier, vol. 31(1), pages 72-94.
    5. Costa, Paula L. & Ferreira, João J. & Torres de Oliveira, Rui, 2023. "From entrepreneurial failure to re-entry," Journal of Business Research, Elsevier, vol. 158(C).
    6. Kumju Hwang & Jinsook Choi, 2021. "How Do Failed Entrepreneurs Cope with Their Prior Failure When They Seek Subsequent Re-Entry into Serial Entrepreneurship? Failed Entrepreneurs’ Optimism and Defensive Pessimism and Coping Humor as a ," IJERPH, MDPI, vol. 18(13), pages 1-24, June.
    7. Castelló, Itziar & Barberá-Tomás, David & Vaara, Eero, 2023. "Moving on: Narrative identity reconstruction after entrepreneurial failure," Journal of Business Venturing, Elsevier, vol. 38(4).
    8. Roccapriore, Ashley Y. & Imhof, Zoë & Cardon, Melissa S., 2021. "Badge of honor or tolerable reality? How previous firm failure and experience influences investor perceptions," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    9. Jenni Dinger & Michael Conger & David Hekman & Carla Bustamante, 2020. "Somebody That I Used to Know: The Immediate and Long-Term Effects of Social Identity in Post-disaster Business Communities," Journal of Business Ethics, Springer, vol. 166(1), pages 115-141, September.
    10. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Does entrepreneurship ecosystem influence business re-entries after failure?," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 211-227, March.
    11. Song Lin & Yasuhiro Yamakawa & Jing Li, 2019. "Emergent learning and change in strategy: empirical study of Chinese serial entrepreneurs with failure experience," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 773-792, September.
    12. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Do emerging ecosystems and individual capitals matter in entrepreneurial re-entry’ quality and speed?," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1131-1158, September.
    13. Massimo Baù & Philipp Sieger & Kimberly A. Eddleston & Francesco Chirico, 2017. "Fail but Try Again? The Effects of Age, Gender, and Multiple–Owner Experience on Failed Entrepreneurs’ Reentry," Entrepreneurship Theory and Practice, , vol. 41(6), pages 909-941, November.
    14. Yasuhiro Yamakawa & Melissa Cardon, 2015. "Causal ascriptions and perceived learning from entrepreneurial failure," Small Business Economics, Springer, vol. 44(4), pages 797-820, April.
    15. Fisch, Christian & Block, Jörn H., 2021. "How does entrepreneurial failure change an entrepreneur's digital identity? Evidence from Twitter data," Journal of Business Venturing, Elsevier, vol. 36(1).
    16. 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.
    17. Liu, Yiran & Li, Yong & Hao, Xiling & Zhang, Yuli, 2019. "Narcissism and learning from entrepreneurial failure," Journal of Business Venturing, Elsevier, vol. 34(3), pages 496-512.
    18. Chong Kyoon Lee & Johan Wiklund & Alejandro Amezcua & Tae Jun Bae & Almantas Palubinskas, 2022. "Business failure and institutions in entrepreneurship: a systematic review and research agenda," Small Business Economics, Springer, vol. 58(4), pages 1997-2023, April.
    19. Yamakawa, Yasuhiro & Cardon, Melissa S., 2017. "How prior investments of time, money, and employee hires influence time to exit a distressed venture, and the extent to which contingency planning helps," Journal of Business Venturing, Elsevier, vol. 32(1), pages 1-17.
    20. Lattacher, Wolfgang & Wdowiak, Malgorzata, 2018. "Entrepreneurial Learning From Exit: How Entrepreneurs Learn and Re-emerge Stronger," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 303-331, Governance Research and Development Centre (CIRU), Zagreb.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:intemj:v::y::i::d:10.1007_s11365-020-00655-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.