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Learning from the failures of others The effects of post‐exit knowledge spillovers on recipient firms

Learning from the failures of others The effects of post‐exit knowledge spillovers on recipient... Purpose – The purpose of this study is to examine the effects of post‐exit knowledge diffusion created by departed firms on recipienfirms. Design/methodology/approach – This is an inductive and exploratory study which tries to understand questions of how and why. The research used a qualitative interview methodology and data analysis using within and cross‐case analysis. Findings – Analysis of the data revealed that recipient firms' strategic directions and organizational design are fundamentally shaped by the career imprint of the former managers of the departed firm. Research limitations/implications – Practical and policy implications are identified and discussed. The study suggests that organizational failure should be viewed as having wider externalities, on both markets and society as a whole. The demise of an industry incumbent should not be viewed as necessarily having a negative impact, rather as a strategic opportunity for new firms to enter and for existing ones to expand by drawing on the expertise released by its departure. Originality/value – This paper makes an original contribution to the literature by integrating learning‐from‐failure, knowledge spillover and career imprinting theories to examine the post‐exit effect of firm departure. The paper also counters prior emphasis of the extant literature on the relationship between work experience and job performance which has focused mainly on experience within the current firm, overlooking the importance of work experience acquired in prior firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Workplace Learning Emerald Publishing

Learning from the failures of others The effects of post‐exit knowledge spillovers on recipient firms

Journal of Workplace Learning , Volume 23 (6): 18 – Aug 9, 2011

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1366-5626
DOI
10.1108/13665621111154386
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this study is to examine the effects of post‐exit knowledge diffusion created by departed firms on recipienfirms. Design/methodology/approach – This is an inductive and exploratory study which tries to understand questions of how and why. The research used a qualitative interview methodology and data analysis using within and cross‐case analysis. Findings – Analysis of the data revealed that recipient firms' strategic directions and organizational design are fundamentally shaped by the career imprint of the former managers of the departed firm. Research limitations/implications – Practical and policy implications are identified and discussed. The study suggests that organizational failure should be viewed as having wider externalities, on both markets and society as a whole. The demise of an industry incumbent should not be viewed as necessarily having a negative impact, rather as a strategic opportunity for new firms to enter and for existing ones to expand by drawing on the expertise released by its departure. Originality/value – This paper makes an original contribution to the literature by integrating learning‐from‐failure, knowledge spillover and career imprinting theories to examine the post‐exit effect of firm departure. The paper also counters prior emphasis of the extant literature on the relationship between work experience and job performance which has focused mainly on experience within the current firm, overlooking the importance of work experience acquired in prior firms.

Journal

Journal of Workplace LearningEmerald Publishing

Published: Aug 9, 2011

Keywords: Organizational failure; Post‐exit; Knowledge spillovers; Learning; Experience; Knowledge management; Ghana

References