WHAT HAPPENS AFTER SUCCESS: THE PERILS OF EXCELLENCE*

Danny Miller

267 citations0/0 files storedJournal of Management Studies

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Organizational Management and Leadership Innovation and Knowledge Management Management and Organizational Studies

Abstract

ABSTRACT This article examines how past performance influences the way an organization evolves, makes decisions, and adapts to its environment. It argues that compared to other periods of history, those that follow a lengthy interval of success will reveal companies that are especially apt to: (1) exhibit inertia in many aspects of structure and strategy‐making process; (2) pursue immoderation, that is, adopt extreme process orientations; (3) manifest inattention, that is, reduce intelligence gathering and information processing activity; and (4) demonstrate insularity by failing to adapt to changes in the environment. an empirical analysis of the long‐term histories of 36 companies provides tentative support for these notions.

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References

1977Institutionalized Organizations: Formal Structure as Myth and Ceremony 1991Exploration and Exploitation in Organizational Learning 1997Organizational Learning: A Theory of Action Perspective 1986Research in Organizational Behavior.1969The social psychology of organizing 1983An Evolutionary Theory of Economic Change 1991Organizational Learning: The Contributing Processes and the Literatures 1977The Population Ecology of Organizations

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