Open AccessOn the emergence of firms and sick institutions
Author(s) -
Darma Mahadea
Publication year - 2000
Publication title -
suid-afrikaanse tydskrif vir ekonomiese en bestuurswetenskappe/south african journal of economic and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.277
H-Index - 17
eISSN - 2222-3436
pISSN - 1015-8812
DOI - 10.4102/sajems.v3i1.2602
Subject(s) - productivity , business , entrepreneurship , goods and services , sick leave , industrial organization , public relations , marketing , economic growth , market economy , economics , labour economics , finance , political science
Organisations and firms are formed by people and entrepreneurs. Firms can become sick just as people do. Not all firms live forever. This paper examines the emergence of "sick" institutions. Organisations can become unhealthy when there is a mismatch between goods and services they produce and the external environment in which they operate. Survival and fitness of an organisation depend on its ability to respond and adapt cost-effectively to the changing environment. Entrepreneurship, n-Achievement and productivity of individuals are critical to an organisation's health. A thorough diagnostic framework of symptoms of organisational ills is required before prescribing any therapy, to bring about a healthy organisation. The future belongs to healthy firms, with adaptable strategies and resources that optimally fit the changing environment.