An exploratory study of the reasons for the collapse of contemporary companies and their link with the concept of quality

Abstract

PurposeThe purpose of this paper is to explore the link between causes of corporate collapse/demise and the concept of quality.Design/methodology/researchThe paper is informed by a review of literature on corporate collapse and quality management. A literature review and global web search of corporate demises is then conducted. Actual causes of corporate demise are established and compared/contrasted with those in the literature to ascertain any similarities/dissimilarities. The link between causes of corporate demise and the concept of quality is then explored and appropriate implications and conclusion drawn.FindingsEvidence from the research suggests a clear linkage between causes of corporate demise and the concept of quality. Quality deficiencies/flaws if unattended may occasion corporate demise, which may be instant or gradual depending on the degree of corporate resilience.Practical implicationsCorporations can only afford to ignore the concept of quality at their own peril. The linkage between the causes of corporate demise and the concept of quality requires managers to prioritise the concept quality and by extension quality management more seriously than ever before.Originality/valueThe line of inquiry pursued by this paper provides additional insights into the phenomenon of corporate demise from a quality management perspective, thereby broadening its understanding.