Narrative Switching in Entrepreneurial Failure Accounts: Unravelling Discourse Dynamics and Variability

Abstract This inductive study investigates the phenomenon of narrative switching in accounts of failure within entrepreneurial contexts, which occurs when a narrator suddenly switches to an alternative story of the events within the same interaction. Using a stories‐in‐action perspective, we present the findings of a narrative analysis of in‐depth interviews with corporate entrepreneurs following a failed collaborative R&D project. We analyse the triggers, functions and implications of narrative switching. Our findings challenge the assumption that narrators typically use one type of story to make sense of failure. Instead, we highlight the interpersonal actions performed when a narrator ‘changes the story’. These actions include altering the takeaway ‘message’, ‘moral’, or ‘coda’ of the story, shifting the presentation of self‐identity and managing accountability related to the failure. Our research underlines the importance of narrative switching as a discursive device in failure accounts and contributes to the broader understanding of how narrative switching shapes sensemaking and identity construction in the face of entrepreneurial challenges.