Fail fast, learn fast: Understanding the process of learning from failure in SMEs

Authors

• Nikolina Koporcic, Laurea University of Applied SciencesFollow
• David Sjödin, Luleå University of TechnologyFollow
• Marko Kohtamäki, University of VaasaFollow
• Vinit Parida, Luleå University of TechnologyFollow

Document Type

Conference Proceeding

Publication Date

Spring 2023

Abstract

‘Fail fast and learn fast’ is a common principle advanced to quickly grow and scale startups and SMEs. However, the literature is lacking detailed insights into how such learning processes are organized. The paper aims to investigate how knowledge-intensive SMEs learn from failures through organizational learning processes. Case studies of three high-tech SMEs that operate in a highly dynamic context are presented. The findings are summarized in the learning from failure process, which includes three phases, each with underlying sub-activities and principles: 1) failure recognition, 2) interactive sensemaking, and 3) organizational adaptation. We summarize our insights into a framework disentangling how SMEs succeed and fail in learning from failures. We contribute to prior literature on organizational learning in an SME context by explicitly focusing on knowledge-intense SMEs and practices that enable effective learning from failures.

Copyright

This work is archived and distributed under the repository's Standard Copyright and Reuse License (opens in new tab). End users may copy, store, and distribute this work without restriction. For all other uses, permission must be obtained from the copyright owners or their authorized agents.

DOI

10.20429/amtp.2023.29

Recommended Citation

Koporcic, N., Sjödin, D., Kohtamäki, M., and Parida, V. (2023). Fail fast, learn fast: Understanding the process of learning from failure in SMEs. Association of Marketing Theory and Practice Proceedings 2023. 29. https://digitalcommons.georgiasouthern.edu/amtp-proceedings_2023/29