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Management Mistakes as Causes of Corporate Crises: Countries in Transition

Author

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  • Drago Dubrovski

    (University of Primorska, Slovenia)

Abstract

A corporate crisis can be defined as a short-term, undesired, unfavourable and critical state in a company which has derived from both internal and external causes and which directly endangers the further existence and growth of the company. Although the state of crisis in the company can be affected by various interrelated external and internal causes, which as to intensity and appearance vary by company, the essence of the causes surely lies in the management of the company. During the period of transition all types of explained management mistakes could be found in Slovene corporate systems. Despite the fact that the hypothesis of an existing pattern of management mistakes which follows the changes in political and economic environment cannot be completely reliably confirmed, some outlines of such a pattern are in spite of all to be seen. If there is really a more or less valid pattern of management mistakes in corporate crises, and these mistakes appear differently with regard to changes in the political and economical environment in countries in transition, this could help decision makers to form a more grounded choice in the process of appointing new crisis or restructuring managers, every time according to their most appropriate competencies.

Suggested Citation

  • Drago Dubrovski, 2007. "Management Mistakes as Causes of Corporate Crises: Countries in Transition," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(4), pages 333-354.
  • Handle: RePEc:mgt:youmgt:v:5:y:2007:i:4:p:333-354
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    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/5_333-354.pdf
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    Cited by:

    1. Ramona PERGEL & Alexandros G. PSYCHOGIOS, 2013. "Making Sense of Crisis: Cognitive Barriers of Learning in Critical Situations," Management Dynamics in the Knowledge Economy Journal, College of Management, National University of Political Studies and Public Administration, vol. 1(2), pages 179-205, August.

    More about this item

    Keywords

    crisis; internal causes; management mistakes; restructuring; transition; Slovenia;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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