No firm Is an island: The role of population-level actors in organizational learning from failure

Peter M Madsen, Vinit Desai
Organization Science,Vol. 29, Issue 4, Pages: 739-753.
When a serious failure occurs within a population of organizations, members of individual organizations in the population attempt to learn vicariously from the event so that future failures may be avoided. This organization-level vicarious learning process has been extensively studied in the organizational learning literature. However, following a serious failure in one organization, a parallel process also plays out at the population level as population-level actors draw lessons from the failure and exert influence over organizations in the population in the interest of preventing future failures. Such population-level processes may exert powerful influences on organization-level learning, but have only begun to be explored in the literature. This paper begins to fill this gap by theorizing and studying the role of population-level actors in organizational learning from failure within and across organizational populations. It