California Management Review

Abstract

Errors pose critical tests for firms, challenging their ability to recover or else face decline. This article frames strategic agility as a response mechanism to overcome errors. Conversely, when firms are repeatedly unable to enact strategic agility, they can enter a hindering state where they struggle to take corrective actions. In this state, it is likely that firms will inadvertently activate error-amplifying feedback loops, becoming the primary architects of their own misfortune. This state is conceptualized as “organizational zemblanity,” which has three root causes: deteriorative culture, leadership deficiencies, and structural inefficiencies.

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