What fails and when? A process view of innovation failure

Abstract

Research on innovation failure has proliferated lately but with little theoretical attention given to the diversity of the concept. Using process theorizing, we present a model and propositions to understand how a firm's anticipation and value toward failure depends on the type of failure (task versus outcome) and the phase (divergent versus convergent) and point (early versus later) ‘within’ the process that the failure occurs. Using the anticipation-value stances, we then present a typology of four modes of innovation failure that can arise ‘from’ task and outcomes failure in the innovation process. The four modes (and associated learning response) are unsolicited failures (prevent-alert-eliminate); hazardous failures (predict-modify-mitigate); fortuitous failures (probe-expose-extrapolate); and excursive failures (facilitate-analyze-harness). To help explain the ideas in our process model and typology, we use the well-known IDEO shopping cart innovation project as an illustrative example. Together, these contributions provide contingency oriented insights on how failure varies and journeys within and from the innovation process, which helps researchers and managers to better understand the related causes, effects and learning responses.