Although the literature contains an impressive volume of studies attempting to identify determinants of organizational growth, researchers have recently noted important inconsistencies in findings. They may be explained, in part, by the variety of approaches used to measure growth. Our study provides a critical review of the literature to identify issues regarding the measurement of growth. We examine alternative approaches in order to assess the consequences of using inappropriate measures. Consequently, we consider three concepts as well as three different measurement formulas. Based on comprehensive data from 193 firms in 48 industries for 20 periods, results from comparative regression analyses reveal that the significance of relationships between determinants and organizational growth, as well as amount of explained variance, depend on the specific approaches used to measure growth. Finally, we provide some guidelines to help researchers select appropriate techniques for measuring organizational growth.

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Organizational learning has been shown to affect performance. This study offers a fine-grained view regarding different types of learning opportunities. Specifically, opportunities to learn from mistakes are examined. Using three separate samples, we first establish statistically reliable and unidimensional measures of both organizational learning and mistake tolerance. Second, we empirically demonstrate the mediating role of organizational learning on the mistake tolerance-performance relationship. Our results offer findings that will generalize to other organizational contexts. We conclude with a dialogue suggesting prescriptive advice for managers and provide a discussion of how learning from mistakes can be an important catalyst in organizational change. Using specific items from our survey, we stress that managers need to make a conscious effort to communicate to employees the value in learning from mistakes as an important part of improving and changing existing organizational practices.