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South African Journal of Economic and Management Sciences

versión On-line ISSN 2222-3436
versión impresa ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.11 no.4 Pretoria dic. 2008

 

ARTICLES

 

Critical variables of business failure: A review and classification framework

 

 

Marius Pretorius

Department of Business Management, University of Pretoria

 

 


ABSTRACT

Failure is a phenomenon that ventures face during all stages of the life cycle and requires insight into its causes before it can be reversed. The scientific literature on failure is, however, spread over multiple disciplines. This study's line of enquiry firstly reviews the documented research (both theoretical and empirical) encompassing the phenomenon 'business failure' on a multi-disciplinary basis. A conceptual framework is then proposed for categorising variables into four sub-domains namely: signs and prediction; causes and preconditions; recovery; and cognition and learning. Better understanding of the failure phenomenon is achieved. The methodology applied is fundamentally based on grounded theory interpretation with a focus on classifying the identified relevant variables.

Key words: Decline, Failure, Trouble, Crisis, Turnaround

JEL: E32


 

 

“Full text available only in PDF format”

 

 

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