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The Business Failure Process. An Integrative Model of the Literature

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  • N. Crutzen
  • D. Van Caille
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    Abstract

    Considering the fragmented literature related to business failure prevention and considering the need for a unifying conceptual framework on how and why companies fail, the current paper proposes an integration of the multiple similar, complementary or supplementary findings of previous preventive contributions, i.e. the studies focused on the identification of failure factors and of failure paths. An in-depth analysis of the existing literature and of its limitations leads us to the elaboration of an original integrative model on how and why companies fail. It is founded on a resource- based view of the firm (Wernerfelt, 1984) and it represents, in a deterministic perspective, the different general phases which a failing firm goes through until it eventually exits the failure process.

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    File URL: http://www.econ.kuleuven.be/tem/jaargangen/2001-2010/2008/RBE%202008-3/2008-3%20-%20Crutzen-Van%20Caillie.pdf
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    Bibliographic Info

    Article provided by Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen in its journal Review of Business and Economics.

    Volume (Year): LIII (2008)
    Issue (Month): 3 ()
    Pages: 287-316

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    Handle: RePEc:ete:revbec:20080304

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    Web page: http://www.econ.kuleuven.be
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    Related research

    Keywords: Failure; causes and symptoms of failure; dynamics of failure; failure path(s);

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