Vinit Desai
Industrial and Corporate Change, Volume 19, Issue 3, Pp. 713-739

Failures contain valuable information. However, organizations vary at learning from them. I ask whether failures prompt organizations to make technological investments, and whether these investments help boost performance beyond improvements gained through direct organizational learning. I test hypotheses on natural gas distributors to determine whether they enhance their performance by learning directly, by recognizing failures as prompts to invest in safer technologies, or through a combination. Results suggest that distributors learn directly, though firms, which also invest in related technologies, are able to gain some additional benefits.