Failure is a necessary by-product of experimentation and being able to
identify early failures is important for recognizing where opportunities
are, and are not, and for allowing a quick release of resources for
more promising projects. This is particularly important for small
enterprises suffering from resource limitations but examining own
failures is emotionally unpleasant and entrepreneurs usually show
aversion to reflect on their unsuccessful experiences. Overall,
organizations that are able to learn from failure are extraordinarily
rare despite their commitment to do so and, due to the tendency of
researchers to focus on successful cases, the possibilities to learn
from failure are diminished. This paper takes a look at a failure case
of knowledge transfer in the context of a product development process
and analyzes the factors that had a negative influence on it. In order
to explore this phenomenon, a single case was used and both actors
involved, a graphic designer working in the field of creative industries
and his client, were interviewed. Secondary data comprising written
documents, references and other relevant material, were also collected
for data triangulation. We found that keeping time, external opinions
and the feeling of ownership in mind, is critical to avoid mistakes
during the knowledge transfer process. More specifically, the
investigated case seemed to fail mainly due to the propensity of the
designer to push the project forward without allowing enough time for
the client to process and make sense of information. In this regard, we
see how designers face a paradox as they pursue effective knowledge
transfer. Ambiguity and contradictions make the development process
longer but they are necessary for effective knowledge creation. From a
managerial perspective, the identified factors point some of the areas
in which freelancers and their clients must concentrate as they try to
avoid unsuccessful knowledge transfer.