A THEORETICAL APPROACH TO ORGANIZATIONAL FAILURE: PREDISPOSITION OF PUBLIC ORGANIZATIONS TO ORGANIZATIONAL FAILURE

The purpose of this study is the theoretical explanation of organizational failure and comparison of the public and private sector organizations in terms of organizational failure. thus, the study aims to investigate the failure of public organizations. for this purpose, first, environmental and organizational approaches that aim to explain organizational failure are reviewed. then, the common criteria are derived from the main research that compares public and private organizations. these criteria are used to compare organizations in both sectors. distinctive characteristics of public organizational failure and factors that are likely to drift public organizations into failure are discussed. research results indicated that public organizations are more likely to experience organizational failure due to their wider scope of the institutional environment, diversity of environmental actors, the complexity of organizational goals, and weakness of decision-making processes. however, the study revealed that failures of public organizations are micro-level and sustainable failures because they are supported by external resources and are unlikely to exit from their organizational environment.