Learning from failures is a key success factor for entrepreneurs (Petkova, 2009). However, experiencing failures does not automatically lead to learning (Cannon & Edmondson, 2005; van Gelderen). Unfortunately, research on the conditions that foster learning from failure is still limited (Petkova, 2009). Based on action-regulation theory (Frese & Zapf, 1994), we extend this important research topic by introducing error orientation (Rybowiak et al., 1999) as a moderator of the relationship between organizational failure and learning. Organizational failure is defined as a considerable deviation from an expected and desired goal in an organization (e.g. business) (Cannon & Edmondson, 2005) and includes large and small failures.