Benefit from market knowledge: Failure analysis capability and venture goal progress in a turbulent environment

Abstract

Drawing on the dynamic capabilities view, this study investigates the role of failure analysis capability in affecting venture goal progress in the technologically turbulent environment in which entrepreneurial failures are commonplace. Combining a three-wave time-lagged questionnaire survey (Study 1) with a qualitative interview (Study 2) on high-tech entrepreneurial ventures in China, we conclude that technological turbulence weakens the positive association between failure analysis capability and venture goal progress. However, the market knowledge depth of new ventures can be applied to mitigate the negative moderating effect of technological turbulence on the failure analysis capability-venture goal progress association. Theoretical and practical implications are derived from the above findings to guide future research.