Date Added: Aug 2009
Turbulent economic environments such as the current Global Financial Crisis (GFC) present organisations with both challenges and opportunities. Researchers such as Sull (1999) and McGrath & MacMillan (2009) have investigated reasons why some companies succeed, while others fail when faced with changing market environments. Sull (1999) observed that there was a common misconception that companies failed because they did not recognise the approaching challenges and did not plan a appropriate response (inertia). Contrary to this perception, Sull (1999) found that many failed because of active inertia.