Obsolescence
If the organizational routines and structures have not been altered for a long time, the
probability that these structures loose their fit with the environmental conditions
increases when the environment is turbulent. This means, that these routines get
obsolescent (Schulz, 1993).
The consequence on the organizational level is that old
organizations in a highly turbulent environment with obsolescent (core) routines
should have a higher probability of dying than young ones
(Barron, West and Hannan, 1994).
Literature:
Barron, West and Hannan (1994),
Schulz (1993)
