›› 2018, Vol. 30 ›› Issue (10): 184-195.

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Organization Decline and Organizational Innovation: The Effect of Learning from Failures and Organization Routine Updating

Tang Chaoyong1, Chen Wanming2, Chen Qi2, Niu Chonghuai3   

  1. 1. School of Economics and Management, Taiyuan University of Science and Technology, Taiyuan 030024;
    2. School of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016;
    3. College of Economics and Management, Taiyuan University of Technology, Taiyuan 030024
  • Received:2016-06-23 Online:2018-10-28 Published:2018-10-23

Abstract:

The studies on organizational innovation path have been concerned widely. But there are few studies about the effect of organization decline on organizational innovation. This study explores the effect of organization decline on organizational innovation and its inherent mechanism based on learning from failures and organization routine updating. The survey data of 196 enterprises is used to carry out an empirical research through multiple regression analysis and Bootstrap methods. The results reveal that organization decline has a significantly positive impact on organizational innovation and learning from failures, learning from failures has significantly positive effects on organizational innovation, learning from failures has a partially intermediary role between organization decline and organizational innovation, and organization routine updating enhances the positive relationship between organization decline and learning from failures. On this basis, organization routine updating moderates indirect impact of organization decline on organizational innovation through learning from failures. These research conclusions further enrich the organizational innovation path research, and provide reference for the business innovation practice.

Key words: organization decline, learning from failures, organizational innovation, organization routine updating