In this qualitative and inductive paper, we examined population-level learning by addressing the effects of failure events on the nature and mix of routines in a population. We reviewed approximately 50 failures and near-failures in 28 industry histories to assess how they affected other organizations in the industry and practices in the industry as a whole. Findings suggest that three broad ways these events affect practices enacted by other organizations, or population-level patterns of routines: (1) through direct consequences of failure, (2) through reactions to failure by other organizations, and (3) through consequences of reactions to failure. Furthermore, population-level learning from failure can occur in at least two distinguishable forms: (1) In interorganizational population-level learning, many organizations of a population react to the failure of another organization; hence, the change of routines is informed by some shared experience. (2) In collective population-level learning, the learning processes involve collective actions, outcomes, institutions, and/or routines. Our analysis suggests that failure events can be a powerful engine of population-level learning, although this learning is not necessarily or always adaptive. The processes and outcomes of population-level-learning are complex and can lead to results that were not intended and might harm the population. Finally, strategic implications of learning from failure will be discussed.
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