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The enactment of organizational decline: The self-fulfilling prophecy


Edwards, John C; McKinley, William; Moon, Gyewan (2002). The enactment of organizational decline: The self-fulfilling prophecy. International Journal of Organizational Analysis, 10(1):55-75.

Abstract

Building on the enactment perspective and past work on the self-fulfilling prophecy, this paper explores how organizational decline can be enacted through self-fulfilling prophecies of decline. We present two self-fulfilling prophecy-based models of organizational decline, one in which decline is enacted unintentionally through the predictions of an organization's managers, and a second in which decline is enacted unintentionally through the predictions of external constituencies. We articulate propositions that capture the dynamics of each model and that are intended as a platform for future empirical research. We also discuss the implications of our theoretical framework for future theory development on the causes of organizational decline, and offer suggestions for managers who wish to avoid organizational decline.

Abstract

Building on the enactment perspective and past work on the self-fulfilling prophecy, this paper explores how organizational decline can be enacted through self-fulfilling prophecies of decline. We present two self-fulfilling prophecy-based models of organizational decline, one in which decline is enacted unintentionally through the predictions of an organization's managers, and a second in which decline is enacted unintentionally through the predictions of external constituencies. We articulate propositions that capture the dynamics of each model and that are intended as a platform for future empirical research. We also discuss the implications of our theoretical framework for future theory development on the causes of organizational decline, and offer suggestions for managers who wish to avoid organizational decline.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2002
Deposited On:13 Aug 2014 09:27
Last Modified:05 Apr 2016 18:00
Publisher:Emerald
ISSN:1758-8561
Publisher DOI:https://doi.org/10.1108/eb028944
Other Identification Number:merlin-id:9874

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