Conditioning learning given failure: the roles of goal valence and failure orientation

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ABSTRACT Although there is abundant research into learning from business failure little is known about how micro, small and medium enterprises (SMEs) owner-managers condition learning given failure. Much attention goes to large enterprises while circumventing SMEs. Literature observes failure orientation as crucial in explaining learning from failure but avoids unpacking its constituent elements. Furthermore, although life goals, which are superior to business goals, are known to strongly influence entrepreneurial behaviour, how they play a role in conditioning learning from failure has not been explored. Therefore, drawing on self-identity, goal, upper echelons, entrepreneurial learning and knowledge management perspectives, this study theorizes how owner-managers condition learning given failure. The article presents fresh knowledge by unpacking the first-time component elements of failure orientation. It also unveils the first-time goal valence as the overarching driving force that influences failure orientation and provides an original and novel framework in this regard.