An exploration of how resource mismanagement causes organisational declineTools Burch, Jonathan (2018) An exploration of how resource mismanagement causes organisational decline. [Dissertation (University of Nottingham only)]
AbstractThe purpose of this paper is to answer the research question: “How does resource mismanagement serve as a cause of organisational decline?” This question derives from resource orchestration and organisational decline theory, which will be reviewed to illustrate how this paper contributes to these two theoretical literatures. A mixed-methods quantitative and qualitative case study, comprising a sample of 5 firms – JJB Sports; Comet Group; Blockbuster Entertainment; Clinton Cards and HMV Group – will be undertaken to derive results that support the author’s research. The results, in correlation with existing resource orchestration and organisational decline literature, confirm that resource mismanagement is an internal cause of decline, leading to value destruction and weak performance within firms. The author found five key trends of resource mismanagement across each of these five retail firms that significantly contributed to their decline in financial performance – financial mismanagement; product mismanagement; property mismanagement; relational mismanagement and lastly, poor organisational ambidexterity. Finally, the paper’s contributions to existing literature include the following - empirical confirmation for various internal causes of decline and resource orchestration’s theoretical predictions, and a theoretical contribution to resource orchestration literature, by analysing it in conjunction with organisational decline theory for the first time.
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