Adaptive organizational responses to varied types of failures: Empirical insights from technology providers in Ghana

Abstract

Although failure has been described as a significant trigger for the organizational learning process, current literature studies have provided limited insight into the organizational conditions that foster learning from failure. Interpreting the organizational failure as a missed opportunity for a firm to anticipate, recognize, avoid, neutralize or adapt to external environment generating diverse misfits, our study investigates how firms respond to different misfits within and in their environment. Using interviews and document analysis, we identify four types of misfits-managerial, cultural, technical, and political-and examine how firms respond to these misfits over time. Our research reveals that firms exhibit distinct patterns of response and learning depending on the type of misfit encountered. We also identify specific strategies and resources that firms utilize to anticipate, prepare for, and respond to misfits, such as developing innovative solutions and cultivating external networks. Lastly, we discuss the managerial implications of our findings and propose avenues for future research.