How Corporate Entrepreneurs Learn from Fledgling Innovation Initiatives: Cognition and the Development of a Termination Script
Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology
Heidi M. Neck
Babson College - Arthur M. Blank Center for Entrepreneurship
Dawn R. DeTienne
Colorado State University, Fort Collins - College of Business; Utah State University
Entrepreneurship Theory and Practice, Vol. 31, No. 6, pp. 829-852, November 2007
Through a parallel examination of literatures on new product development termination and entrepreneurial cognition, this study explores a specific form of human capital development: learning from failure. Specifically we advance the literature on entrepreneurial human capital by linking cognitive scripts used by corporate entrepreneurs in project termination decisions to corresponding levels of learning. Our longitudinal investigation of technology-based firms suggests that corporate entrepreneurs use three types of termination scripts: (1) undisciplined termination, (2) strategic termination, and (3) innovation drift. We illustrate the presence of each script and analyze learning implications during innovation projects (action learning) and after termination (post-performance learning). Based on our analysis we suggest that organizational learning is dependent upon the type of termination script individuals employ.
Number of Pages in PDF File: 24
Date posted: October 19, 2007
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