Decomposition of double-loop failure risk in post-innovation failure phase

Juthamon Sithipolvanichgul, Amandeep Dhir, Shalini Talwar and Puneet Kaur

Technovation, 2025, vol. 140, issue C

Abstract: Failing to capitalize on the learning opportunity offered by innovation failure can lead to the risk of what may be called a ‘double-loop’ failure. However, the scholarly literature has not examined the risk of failing to learn from the experienced innovation failure in sufficient detail. We address the deficit in insights by conducting a qualitative study with firms that have experienced innovation failure to decompose the risk of ‘double-loop’ failure. Inductive analysis of 49 responses revealed consequences and responses that characterize the post-innovation failure phase: collateral damage, precipitous response, and missed learning opportunity. Collateral damage captures resource loss, external embarrassment, and jeopardized future innovation as the outcome of failed innovation; precipitous response comprises deliberate avoidance, blame game, and negative affectivity as the reaction of internal stakeholders to failure; and missed learning opportunity unpacks into failing the stakeholders, failure to unlearn, and failure to capture knowledge. These post-innovation failure consequences and responses exacerbate the risk of double-loop failure, reducing firms' capacity to salvage any value from the failure. Based on these findings, we propose a framework, which conceptualizes the post-innovation failure dynamics as a chain reaction leading to double-loop failure. The findings and the framework serve as the basis for offering tangible and actionable suggestions for scholars and managers.

Keywords: Double-loop failure; Knowledge management; Learning from failure; Open-ended essays; Qualitative research design (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:techno:v:140:y:2025:i:c:s0166497224001718

DOI: 10.1016/j.technovation.2024.103121

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