How does team learning from failure facilitate new product performance? The double-edged moderating effect of collective efficacy

Xiangming (Tommy) Tao (), Catherine L. Wang (), Paul J. A. Robson () and Mathew (Mat) Hughes ()
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Xiangming (Tommy) Tao: University of Sussex Business School
Catherine L. Wang: Brunel University London
Paul J. A. Robson: University of London
Mathew (Mat) Hughes: University of Leicester

Small Business Economics, 2025, vol. 64, issue 1, No 7, 133-155

Abstract: Abstract Learning from failure can foster innovation, but how a new product development (NPD) team’s learning from failure affects new product performance requires more insights. In particular, the question remains on how collective efficacy, which discerns team members’ belief to achieve desired goals, affects team learning from failure towards improving new product performance. Using social cognitive theory complemented by sensemaking and attribution theories, we examine the effects of NPD teams’ (experiential and vicarious) learning from failure on new product performance and the moderating effects of collective efficacy on these relationships. With survey data collected from 398 responses within 152 NPD teams in Chinese high-tech small and medium-sized enterprises, we find that both experiential and vicarious learning from failure enhance new product performance in terms of speed to market and product innovativeness. Further, as collective efficacy increases, the positive effect of experiential learning from failure on speed to market is strengthened. However, the positive effect of vicarious learning from failure on product innovativeness is weakened. Our results suggest that NPD teams can benefit from experiential and vicarious learning from failure to improve new product performance but must pay attention to the double-edged effect of collective efficacy.

Keywords: Learning from failure; Experiential learning; Vicarious learning; Collective efficacy; Social cognitive theory; New product development team; Small and medium-sized enterprises (search for similar items in EconPapers)
JEL-codes: D83 D91 L26 O31 O32 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11187-024-00895-2

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