From resilience to performance: How learning from innovation failure shapes entrepreneurship in disaster-prone areas

This study examines how entrepreneurial resilience influences learning from innovation failure and its implications for entrepreneurial well-being, performance, and business innovation among young entrepreneurs in disaster-prone areas of West Sumatra. Utilizing a quantitative approach with 434 respondents and employing Partial Least Squares-based Structural Equation Modeling analysis, the results reveal that entrepreneurial resilience significantly enhances learning from innovation failure. This, in turn, leads to improved business well-being, performance, and innovation, with innovation experiencing the most substantial impact. The findings highlight the importance of learning from failure as a crucial mechanism that connects resilience to entrepreneurial outcomes. Theoretically, this study enriches the literature on entrepreneurship by proposing a mediation model of learning from failure in the context of disaster-prone areas. Practically, it recommends an entrepreneurship program that incorporates psychological capacity building, entrepreneurial literacy, and disaster risk management to enhance adaptability, innovation, and competitiveness among entrepreneurs.