Learning From Success and Failure in Corporate Entrepreneurship and Organizational Change: A Multi-Case Study of Chinese Companies

Abstract

This study focused on how Chinese companies effectively learn from success and failures during the corporate entrepreneurship and organizational change process. 9 corporate entrepreneurship cases (6 success and 3 failures) from three diversified Chinese companies were analyzed. A contingency model was revealed that the learning process largely depended on the heterogeneity of corporate entrepreneurship activities. When companies initiated explorations in new and emergent business areas, learning from the others’ success was emphasized; When companies only targeted on the improvement and change of the current business, learning from the combination of own success and failures was advantageous; When companies had failure experience in explorative practices, the subsequent corporate entrepreneurship activities (either exploration or exploitation) would benefit from the learning from the failures. Theoretical and managerial implications were also discussed.