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Western Union's Failed Reinvention: The Role of Momentum in Resisting Strategic Change, 1965–1993

Published online by Cambridge University Press:  30 November 2012

Christopher McDonald
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Abstract

The current scholarly consensus argues that business failure results from the misalignment of a company's strategy and its environment. The case of Western Union, however, suggests that a third element—momentum—is also part of the explanation for companies' failures. The weight of historically accumulated systems, skills, and workers constrains the speed with which managers can adapt their strategy to the environment. Momentum stood in the way of Western Union's attempt to place itself at the center of the growing world of computer communications systems.

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Articles
Information
Business History Review , Volume 86 , Issue 3 , Autumn 2012 , pp. 527 - 549
Copyright
Copyright © The President and Fellows of Harvard College 2012

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