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Old habits die hard: A tale of two failed companies and unwanted inheritance

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  • Amankwah-Amoah, Joseph

Abstract

This article examines whether state-owned enterprises inherit the problems and stigmas resulting from the actions and inactions of their predecessor firms. In this direction, we advance two main theories of inherited background: the “wanted inheritance” and “sins of the father” perspective. We shed light on this issue using the cautionary tale of two failed companies: Ghana Airways (GA) and Ghana International Airlines (GIA). Our data indicate that GIA acquired some wanted inheritance such as former employees and their expertise, but this was accompanied by unwanted inheritance such as tainted ‘image’ and years of dissatisfaction of their customers from Ghana Airways, which affected its operations and precipitated its untimely demise. We conclude by outlining the implications of our findings for management and governments.

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  • Amankwah-Amoah, Joseph, 2014. "Old habits die hard: A tale of two failed companies and unwanted inheritance," Journal of Business Research, Elsevier, vol. 67(9), pages 1894-1903.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:9:p:1894-1903
    DOI: 10.1016/j.jbusres.2013.11.053
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    3. Li, Shenxue & Easterby-Smith, Mark & Hong, Jacky F.L., 2019. "Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China," Journal of Business Research, Elsevier, vol. 97(C), pages 212-226.
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    5. Forough Zarea Fazlelahi & J. Henri Burgers & Martin Obschonka & Per Davidsson, 2023. "Spinoffs’ alliance network growth beyond parental ties: performance diminishing, then performance enhancing," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 743-773, June.
    6. Joseph Amankwah‐Amoah & Johnny Syllias, 2020. "Can adopting ambitious environmental sustainability initiatives lead to business failures? An analytical framework," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 240-249, January.
    7. Karabag, Solmaz Filiz, 2019. "Factors impacting firm failure and technological development: A study of three emerging-economy firms," Journal of Business Research, Elsevier, vol. 98(C), pages 462-474.
    8. Amankwah-Amoah, Joseph, 2017. "Cultivating greater self-confidence in African management research," MPRA Paper 79751, University Library of Munich, Germany, revised 2017.
    9. Amankwah-Amoah, Joseph, 2017. "Global consolidation of industries and business failures: insights from brick-and-mortar and online outlets," MPRA Paper 82509, University Library of Munich, Germany.
    10. Amankwah-Amoah, Joseph, 2019. "Opening Editorial: Multinational enterprises and business failures: A new research agenda," MPRA Paper 101145, University Library of Munich, Germany.
    11. Amankwah-Amoah, Joseph, 2019. "Big data analytics and business failures in data-Rich environments: An organizing framework," MPRA Paper 91264, University Library of Munich, Germany.
    12. Amankwah-Amoah, Joseph, 2014. "Explanations for strategic persistence in the wake of others’ failures," MPRA Paper 63409, University Library of Munich, Germany.
    13. Amankwah-Amoah, Joseph & Zhang, Hongxu, 2014. "What can we learn from failed international companies?," MPRA Paper 63591, University Library of Munich, Germany, revised 2014.
    14. Amankwah-Amoah, Joseph, 2015. "Solar energy in sub-Saharan Africa: The challenges and opportunities of technological leapfrogging," MPRA Paper 88627, University Library of Munich, Germany.
    15. Amankwah-Amoah, Joseph, 2014. "An integrative framework of attributions after a business failure," MPRA Paper 63384, University Library of Munich, Germany.
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