Abstract

Research demonstrates that experiences of failure can have positive and negative effects on a firm’s subsequent behavior and performance. This contradictory finding necessitates in-depth exploration on the mechanisms behind failure-related performance change. The purpose of this study is to fill this gap by disaggregating the postfailure learning process into “falling down” and “bouncing back” paths and addressing their relative effects on organizational performance in an integrated framework. We test our arguments in the context of a computer-based strategic business simulation. We repeatedly collect survey data from 144 teams in an executive education program during 2016-2018. Our study contributes to the literature on organizational learning from failure in three dimensions. First, we develop a comprehensive model by integrating macro and micro perspectives. Specifically, we advance our understanding of a firm’s subsequent reactions to failure through its micro-foundation rooted in top management team (TMT) dynamics. Second, our findings indicate that organizational learning from failure involves two stages, namely chaos stage and reassembly stages. Finally, we reveal that the severity of failure amplifies both falling down and bouncing back effects on organizational performance change. From our findings, we draw implications for organizations to facilitate effective learning from failure."

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Abstract

Using data from 310 executive MBA students in 66 teams on a business simulation project, we explored (a) how shared leadership and team learning behaviors influence each other over time in self-managed teams, and (b) how the stability of the leadership network structure (i.e., network churn) is associated with team learning behaviors. We found that shared leadership stimulated team learning behaviors in a manner consistent with previous research at the early stages of teams' work together, but not at the middle and later stages of the task. We also found that teams that engaged in more learning behaviors early in the task were more likely to keep their leadership network structure stable. This stability was positively associated with team learning behaviors at the midpoint and end of the task. We use these findings to elaborate theory on how leadership and learning in self-managed teams develop, change, and influence each other over time.

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DYNAMICS ;  NETWORK ;  network churn ;  ORGANIZATIONS ;  PERFORMANCE ;  ROUTINES ;  self-managed teams ;  shared leadership ;  team learning behaviors ;  time ;  WORK

Abstract

Shared leadership is a type of team leadership structure through which multiple team members perform team leadership functions in their pursuit of team goals. In the current study, we develop a multilevel model that explains the role of communication networks in the formation of shared leadership and its underlying individual-level process through interpersonal trust. We further investigate the effect of shared leadership on team performance. We examined this model by using multisource, multiwave data collected from 312 executive MBA members of 64 project teams participating in an enterprise simulation. Results revealed that individual communication network centrality had a positive effect on informal leader emergence via interpersonal trust network centrality. Team communication network structure influences team leadership structure, which in turn influences objective team performance. Our study advances shared leadership research by using a multilevel approach to explain the effects of communication networks on the formation of shared leadership and by showing the effect of shared leadership on objective team performance.

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In this study, we examine how power dynamics influence team learning behavior in self-managing teams over time. Using a longitudinal approach and measures of power based on network methodologies, we collected data from 377 executive MBA students in 79 teams on a start- up simulation project at the beginning, midpoint, and end of their work. We found that power dynamics influenced team learning behavior and the structure by which leadership was shared among members. These relationships were weaker when the power distance was unstable, and when teams were at the temporal midpoint of their work. These findings have implications for how power and learning in teams develop over time and support a socialized power perspective on team learning behaviors.

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