Title: It wasn’t me: entrepreneurial failure attribution and learning from failure

Authors: Frederik J. Riar; Peter M. Bican; Jannes Fischer

Addresses: Karlsruhe Institute of Technology Department of Economics and Management Institute of Management Kaiserstraße 89, 76133 Karlsruhe, Germany ' Friedrich-Alexander-University Erlangen-Nuremberg (FAU) Chair of Technology Management Dr.-Mack-Straße 81, 90762 Fürth, Germany ' Zenhomes GmbH Mollstraße 31, 10249 10405 Berlin, Germany

Abstract: Can entrepreneurs learn from failure? Using frameworks from attribution theory, we draw on unique qualitative data from entrepreneurs who had experienced failure before re-engaging in entrepreneurial activities. We find that the direction of failure attribution, as either attributed to external or internal causes, affects learning from failure differently and propose that while an excessive focus on self-attribution may harm future prospects of entrepreneurial activity, over-attributing failure to external causes might possibly hinder positive returns from learning from failure. Moreover, external and internal aspects influence how entrepreneurs learn from previously failed ventures. Failure shall not be romanticised, as it entails profound consequences for attribution and its effects on learning. Implications for research on failure, learning from failure, and attribution theory, as well as implications for practice are further discussed. Propositions for future research endeavours are derived.

Keywords: entrepreneurial failure; attribution; learning from failure; entrepreneurship; start-ups; self-attribution.

DOI: 10.1504/IJEV.2021.114385

International Journal of Entrepreneurial Venturing, 2021 Vol.13 No.2, pp.113 - 136

Received: 31 Jul 2019
Accepted: 01 May 2020
Published online: 20 Apr 2021 *

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