AbstractThis paper develops a model of the internal corporate venturing process. The model explores conditions under which entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes. Persisting with a course of action despite associated negative outcomes runs counter to trial‐and‐error learning behavior. We suggest that entrepreneurs are likely to continue with a course of action despite experiencing negative outcomes when the level of ambiguity is high and slack resources are available. In contrast, trial‐and‐error learning is likely to occur when either the level of ambiguity is low or when slack resources are not available. We examine these and other aspects of the venturing process with longitudinal data on the development of one venture. The data were collected over a 12‐year period during the commercial development of cochlear implants within a large diversified corporation. The results support our core hypotheses on trial‐and‐error learning and action persistence while extending our understanding of associa