Publication:
The Stigma of Failure in Organizations

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Authors
Ferrer, Geraldo
Dew, Nicholas
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Date of Issue
2010
Date
January-June 2010
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Abstract
Organizations with exceptional operational performance have generally achieved this status through management’s diligence encouraging the workforce to innovate. the use of suggestion boxes to collect process improvement suggestions from the workforce is one such example, but they are not always successful. Some organizations do a good job collecting great ideas from their workers, both staff and managers, while others see little result from their efforts. This paper presents a formal model of the (dis)incentives for entrepreneurial behavior in organizations. the model extends research on the stigma of failure into organizations by examining the implications of more conservative and more experimental organizational cultures on the incentives for entrepreneurial action by the corporate-funded employee. the models explain how a forgiving organization that is willing to accept failure as well as success will lead to more product and process innovation. contrariwise, it explains how a bureaucratic organization will rarely innovate because of its low tolerance for unsuccessful ventures.
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The article of record as published may be located at http://www.joscm.com.br/previous/3-1/download/JOSCM_VOL3_NUMBER1_2.pdf
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Graduate School of Business & Public Policy (GSBPP)
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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