A unified framework for incorporating decision making into explanations of business failure. Issue 7 (10th August 2015)

• Record Type: Journal Article
• Authors: Amankwah-Amoah, Joseph
• Is Part Of: Industrial management & data systems. Volume 115:Issue 7(2015)
• Page Start: 1341
• Page End: 1357
• Publication Date: 2015-08-10
• Subjects: Industrial management -- Periodicals; Electronic data processing -- Periodicals; Business -- Periodicals; Industrial management -- Great Britain -- Periodicals; 658.05
• DOI: 10.1108/IMDS-03-2015-0085
• Languages: English
• ISSNs: 0263-5577

Abstract

<abstract> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <sec> <title content-type="abstract-heading">Purpose</title> <p> – The purpose of this paper is to examine how decision-maker attributes unfold to precipitate organisational failure. The analysis brings to light how key attributes such as information-processing capabilities and human capital decay interact to bring about business decline and exit. </p> </sec> <sec> <title content-type="abstract-heading">Design/methodology/approach</title> <p> – The study is based on an integrated review and conceptualisation of the literature. </p> </sec> <sec> <title content-type="abstract-heading">Findings</title> <p> – The study articulates how a set of attributes of decision makers, i.e. human capital obsolescence, powerlessness, meaninglessness and institutional linkages, contributes to organisational failure. </p> </sec> <sec> <title content-type="abstract-heading">Research limitations/implications</title> <p> – The paper concludes by setting out an array of strategies of learning from others' failures. </p> </sec> <sec> <title content-type="abstract-heading">Originality/value</title> <p> – In spite of a growing body of research on organisational failure, scholars have placed overwhelming emphasis on ecological explanations and business failure prediction models. The study moves beyond the ecological explanations to offer a more fine-grained analysis of firm-level factors that precipitate business failure.</p> </sec> </abstract>