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A unified framework for incorporating decision-.making into explanations of business failure

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  • Amankwah-Amoah, Joseph

Abstract

Purpose – The purpose of the article is to examine how decision-maker attributes unfold to precipitate organisational failure. Our analysis brings to light how key attributes such as information processing capabilities and human capital decay interact to bring about business decline and exit. Design/methodology/approach – The study is based on an integrated review and conceptualisation of the literature. Findings – 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. Research limitations/implications – The paper concludes by setting out an array of strategies of learning from others’ failures. Originality/value – 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.

Suggested Citation

  • Amankwah-Amoah, Joseph, 2015. "A unified framework for incorporating decision-.making into explanations of business failure," MPRA Paper 65896, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:65896
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Amankwah-Amoah, Joseph, 2016. "An integrative process model of organisational failure," Journal of Business Research, Elsevier, vol. 69(9), pages 3388-3397.
    2. Zhang, Hongxu & Amankwah-Amoah, Joseph & Beaverstock, Jonathan, 2019. "Toward a construct of dynamic capabilities malfunction: Insights from failed Chinese entrepreneurs," Journal of Business Research, Elsevier, vol. 98(C), pages 415-429.
    3. 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.
    4. Amankwah-Amoah, Joseph, 2017. "Integrated vs. add-on: A multidimensional conceptualisation of technology obsolescence," MPRA Paper 86353, University Library of Munich, Germany.
    5. Amankwah-Amoah, Joseph, 2019. "Opening Editorial: Multinational enterprises and business failures: A new research agenda," MPRA Paper 101145, University Library of Munich, Germany.
    6. 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.
    7. María Escribano-Navas & German Gemar, 2021. "Gender and Bankruptcy: A Hotel Survival Econometric Analysis," Sustainability, MDPI, vol. 13(12), pages 1-13, June.
    8. Amankwah-Amoah, Joseph, 2017. "Integrated vs. add-on: A multidimensional conceptualisation of technology obsolescence," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 299-307.
    9. Amankwah-Amoah, Joseph & Debrah, Yaw & Nuertey, Dorcas, 2018. "Institutional Legitimacy, Cross-Border Trade and Institutional Voids: Insights from the Cocoa Industry in Ghana," MPRA Paper 84393, University Library of Munich, Germany.
    10. Amankwah-Amoah, Joseph, 2018. "Why are so many African companies uncompetitive on the global stage? Insights from the global airline industry," MPRA Paper 83933, University Library of Munich, Germany.
    11. Amankwah-Amoah, Joseph & Zhang, Hongxu, 2015. "Business failure research," MPRA Paper 67848, University Library of Munich, Germany.
    12. Amankwah-Amoah, Joseph, 2016. "Emerging economies, emerging challenges: Mobilising and capturing value from big data," MPRA Paper 85625, University Library of Munich, Germany.

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    More about this item

    Keywords

    Business failure; decision-making; decision process;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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