The Protracted Collapse of Ghana Airways: Lessons in Organizational Failure

Abstract

Although the importance of organizational failure has fostered a steady stream of research, a review of the literature suggests that the majority of studies have focused on firms in the private sector and in developed economies. Despite the increasing occurrence of state-owned firms failing in many developing countries, empirical research on this issue remains scant. Using an in-depth case study of Ghana Airways, this article examines the causes of failure of state-owned organizations in developing countries. This study revealed that, in addition to external factors such as liberalization, frequent changes of the top management team and the decision makers’ characteristics contributed significantly to the firm’s demise. The theoretical, managerial, and policy implications of these findings are discussed.