The mechanism of transforming entrepreneurial failure experiences into entrepreneurial knowledge: From the perspective of dual social networks

Based on the SECI knowledge transformation model and the double-loop learning model, we analyze the path and mechanism of transforming entrepreneurial failure experiences into entrepreneurial knowledge at the individual, organizational, and systemic levels. Furthermore, the transformation mechanisms for different entrepreneurial types, fields, and failure costs are compared. (1) There are two transformation paths—Path 1: entrepreneurial failure experiences → resource integration → entrepreneurial learning → entrepreneurial dynamic capabilities, and Path 2: entrepreneurial failure experiences → entrepreneurial social networks → resource integration → entrepreneurial learning → entrepreneurial dynamic capabilities. (2) The transformation modes at the individual, organizational, and systemic levels are experiential, exploratory, and cognitive learning, respectively. (3) At both the individual and organizational levels, individual entrepreneurial networks exert a stronger effect than team entrepreneurial networks. At the systemic level, team entrepreneurial networks exert a greater influence. (4) During the transformation process, the degree of influence of entrepreneurial social networks, learning modes, and knowledge transformation outcomes varies across different entrepreneurial types, fields, and failure costs.