Do Shocks Change Organizations? The Case of NASA

The 50-year history of the National Aeronautics and Space Administration's (NASA) spaceflight program is marked by spectacular accomplishments and devastating tragedy. NASA has suffered three major disasters, each of which destroyed a spacecraft and killed its crew. In the wake of each accident, investigators and analysts identified causes and recommended technical and organizational improvements that NASA should undertake. The NASA case presents an opportunity to examine the question: Do shocks change organizations? The article reviews three prominent theoretical models of organizational change. Then, using data derived from 5 years of participant observation, as well as government reports, academic investigations, and news articles, we present an analysis of whether the factors required for change identified in the literature were and are present at NASA. The results of this examination suggest that in the wake of these shocks, the agency undertook many technical and procedural changes, but that, as the literature predicts, there are also barriers embedded in the fabric of the agency that are likely to thwart change. We conclude by examining the prospects for understanding change in public, private, and nonprofit organizations of all sizes that experience shocks and offer propositions for future research.