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Business Failures; Bank Failures; Industrial Management; Banks & Banking; Mismanagement; Failures (Psychology)
Kim J. (., Miner A. S. (2007). Vicarious Learning from the Failure and Near-failure of others: Evidence from the U.S. Commercial Banking Industry Academy of Management Journal, 50(3), pp. 687-714.
The authors examine whether organizations vicariously learn from near-failures and failures of others. We propose that the impact of such failure-related experience depends on the geographic market and industry origin of the experience.These findings indicate that the local failure-related experience of both banks and thrifts have higher survival-enhancing learning value for banks than nonlocal experience, supporting the value of accessibility and applicability for useful learning.Bank near-failure experience had more value than bank failure experience, but thrift failure and near-failure experience had equivalent impact, suggesting that the learning impact of types of failure-related experience varies with its industry origin.