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What can we learn from failed international companies?

Author

Listed:
  • Amankwah-Amoah, Joseph
  • Zhang, Hongxu

Abstract

Purpose – The purpose of this paper is to examine how organisational closure can inform strategic foresight. Design/methodology/approach – We draw insights from illustrative cases, i.e. Swissair, Sabena and Cameroon Airlines to illustrate our theoretical analysis. Findings – The study shed light on the effects of internal and external factors in precipitating business closures. We established that top executives’ hubris, resistance to change and over-reliance on external consultants are some of precursors to organisational closure. Research limitations/implications – Our analysis provides a range of strategies that organisations can pursue to learn from other firms’ closure and improve their survivability and chances of future success. Originality/value – In spite of a growing body of literature on strategic foresight and organisational closure, the literature has largely developed in isolation and as such our understanding of the relationship between strategic foresight and organisational closure as remained severely limited. The paper integrates these two streams of research to enrich our understanding of how firms can learn from others to improve their strategic foresight.

Suggested Citation

  • Amankwah-Amoah, Joseph & Zhang, Hongxu, 2014. "What can we learn from failed international companies?," MPRA Paper 63591, University Library of Munich, Germany, revised 2014.
    • Handle: RePEc:pra:mprapa:63591
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    References listed on IDEAS

    as
    1. Joseph Amankwah-Amoah & Yaw A. Debrah, 2014. "Air Afrique: the demise of a continental icon," Business History, Taylor & Francis Journals, vol. 56(4), pages 517-546, June.
    2. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
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    6. Amankwah-Amoah, Joseph, 2011. "Learning from the failures of others: The effects of post-exit knowledge spillovers on recipient firms," MPRA Paper 89223, University Library of Munich, Germany.
    7. Gautam Ahuja & Russell W. Coff & Peggy M. Lee, 2005. "Managerial foresight and attempted rent appropriation: insider trading on knowledge of imminent breakthroughs," Strategic Management Journal, Wiley Blackwell, vol. 26(9), pages 791-808, September.
    8. Sarpong, David & Maclean, Mairi & Davies, Clayton, 2013. "A matter of foresight: How practices enable (or impede) organizational foresightfulness," European Management Journal, Elsevier, vol. 31(6), pages 613-625.
    9. Sarpong, David & Maclean, Mairi, 2014. "Unpacking strategic foresight: A practice approach," Scandinavian Journal of Management, Elsevier, vol. 30(1), pages 16-26.
    10. Mark A Hager & Joseph Galaskiewicz & Jeff A Larson, 2004. "Structural embeddedness and the liability of newness among nonprofit organizations," Public Management Review, Taylor & Francis Journals, vol. 6(2), pages 159-188, June.
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    More about this item

    Keywords

    Business failure: strategic foresight;

    JEL classification:

    • 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
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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