Sisyphus in business: Success, failure and the different types of failure

Abstract

By studying three cases of obvious failure (Nokia, Baan and LG Philips Displays), this article identifies three causes of failure in business (fallibility, error and flaw) and defines three types of failing firms from these causes (Icari, Fools and Rogues). In this way, this article provides a simple typology of failure, enhancing our understanding of this phenomenon. All too often failure is approached as something to avoid and as something distinctly negative. Being in business is a Sisyphean mission; it is a continuing struggle, and this struggle is the essence of business, not becoming successful and not avoiding failure.