Organizational failure has not been deeply studied by the Economics of Organizations and its analysis has been carried out from a dual analysis and not from the failure itself. Besides this theoretical gap, the observation of the real world leads to the conclusion that failures are the rule and not the exception. The paper innovates in that it proposes an analytical model to help understand the process of development of organizational failures. This research suggests that the nature of the failure should be analyzed from six main dimensions: i) Structural; ii) Cognitive; iii) Behavioral; iv) Informational; v) Institutional and vi) Political. It is assumed that failures occur in a systemic and synergistic way and the individual is the central element with his/her cognitive and behavioral restrictions. The interactions of individuals give rise to increasing levels of complexity, which characterizes the effect of failure phenomenon. The need for a Theory of Failures is therefore clear.
New institutional economics; Organizational failures; Cooperation
