Narrative Switching in Entrepreneurial Failure Accounts: Unravelling Discourse Dynamics and Variability

What is it about?

------------------------ Research Focus ------------------------ Our research investigates the phenomenon of "narrative switching" in accounts of failure within entrepreneurial contexts, which occurs when a narrator suddenly switches to an alternative story of events during the same interaction. While traditional research often assumes that entrepreneurs rely on a single, stable narrative to make sense of failure, our study challenges this by highlighting the micro-level discourse dynamics where stories are revised and adapted. Using a "stories-in-action" perspective, we analyzed in-depth interviews with corporate entrepreneurs involved in a failed collaborative R&D project to understand why and how these switches occur. We demonstrate that these switches are not mere inconsistencies but are strategic discursive devices used to manage accountability, shift identity presentation, and alter the "moral" or "takeaway" of the failure account.

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Photo by Dmitry Ratushny on Unsplash

Photo by Dmitry Ratushny on Unsplash

Why is it important?

------------------------------------------------------- Contribution to Academic Scholarship ------------------------------------------------------- Our study makes three primary theoretical contributions to the understanding of entrepreneurial failure narratives. First, we extend existing research by identifying distinct patterns in how individuals at different hierarchical levels—senior, middle, and junior—narrate failure. Our findings reveal that authority and organizational position significantly shape the choice of narrative; for example, top-level leaders often favor internal narratives of learning (Catharsis) but may switch to Conspiracy accounts when they fear being scapegoated. Second, we challenge the assumption that narrators rely on a single, consistent story. By viewing stories as dynamic "tools-in-action," we identify specific triggers for narrative switching, such as topic progression, temporal shifts (past vs. present), and interpersonal orientation toward the audience. This perspective shows that narrative switches occur when a current story is perceived as interactionally problematic or leading to an undesired impression. Third, our work enriches the understanding of how organizational accountability is negotiated. We demonstrate that identity is not just revised after a failure experience but is actively constructed and reconstructed during the interaction about it. By identifying five distinct narrative types—Zeitgeist, Catharsis, Inevitability, Mechanistic, and Conspiracy—we offer novel analytical tools to understand the discourse dynamics of failure and how "bricolage" serves as a common institutionalized practice in managing these accounts. ------------------------------------------------------- Contribution to Management Practice ------------------------------------------------------- Our research provides actionable recommendations for stakeholders—such as investors, line managers, and incubators—who support entrepreneurs following a failure. We suggest that stakeholders should actively encourage entrepreneurs to "change the story" if they are stuck in a negative cycle of storytelling that diminishes their willingness to learn or take future risks. This discursive flexibility can facilitate psychological recovery and help move the focus toward future experimentation. Practitioners should also be mindful of the individual's hierarchical position when providing feedback. For instance, senior leaders may need explicit reassurance regarding sole responsibility to avoid defensive "conspiracy" narratives, while junior entrepreneurs can be guided toward "learning-from-failure" accounts to aid their early identity construction. Furthermore, recognizing and normalizing practices like bricolage helps organizations develop a more realistic understanding of the messy, non-linear nature of R&D resource management. Ultimately, training programs for intrapreneurs can benefit from using our narrative typology to understand which story plotlines resonate with specific audiences and how to shift sensemaking about "what happened" in a productive way.

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