New Perspectives in Innovation Failure Analysis: A taxonomy of general errors and strategic management for reducing risks

Mario Coccia

Technology in Society, 2023, vol. 75, issue C

Abstract: In turbulent environments, one of the fundamental problems is the high risk of failure in new innovation projects that affects organizational behaviour and performance of firms and also nations. The study here clarifies the theoretical structure of project-level failure proposing a new definition, based on systems approach (Innovation failure is when organization does not achieve the main goal of project because of a set of errors), and a taxonomy of three general types of error in innovation failures: errors in planning and/or design, in project execution/implementation and in marketization. A case study research clarifies the proposed framework of innovation failures with examples from pharmaceutical sector, aerospace and aircraft industries, and information & communication technology sector. Results suggest that the failure in innovation projects is due to proposed errors associated mainly with bounded rationality of organizations in dealing with goal difficulty, environmental complexity and uncertainty. Different strategies of problem solving to reduce errors and risks leading to innovation failures and improve technological development are proposed, such as learning processes, adaptation perspective, game theory approach, stage-gate method, etc. The proposed systemic concept of innovation failure and related taxonomy of general typologies of error can guide R&D managers, designers, analysts, and policymakers etc. to know main determinants of failure in innovation projects and how appropriate strategies can improve organizational performance and R&D processes of firms for competitive advantage in markets and society.

Keywords: Innovation failure; Goal failure; Innovation management; Adaptation; Decision support; Bathtub curve; Concorde effect; Project management; Learning effects; Learning from failures; Error orientation; New product development; Project failure; Risk taking; Organizational learning; Failure behaviors; Failure rate; Failure management; Organizational performance; Failure risk; Bounded rationality; Satisficing strategy; Management of technology (search for similar items in EconPapers)
JEL-codes: O31 O32 O33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:75:y:2023:i:c:s0160791x23001896

DOI: 10.1016/j.techsoc.2023.102384

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