Toward a construct of dynamic capabilities malfunction: Insights from failed Chinese entrepreneurs

Hongxu Zhang*, Joseph Amankwah-Amoah, Jonathan Beaverstock

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)

7 Citations (Scopus)
81 Downloads (Pure)


This paper explores the processes and mechanisms of business failure in emerging economies. Drawing from the experiences of 50 failed entrepreneurs in China, we developed the concept of dynamic capabilities malfunction (DCM) to explain how business failure can stem from maladaptive, misallocation of attention and internal deficiencies. Our phase model explicates how exogenous and endogenous factors can interplay to contribute to DCM that ultimately led to the business closures. Another unexpected finding was that the failure occurred during the process of business transition. The implications for business failure research in emerging markets are discussed.

Original languageEnglish
Pages (from-to)415-429
Number of pages15
JournalJournal of Business Research
Early online date29 Jun 2018
Publication statusPublished - 1 May 2019


Structured keywords

  • MGMT International Business Management and Strategy


  • Business failure
  • Dynamic capabilities malfunction
  • Emerging economies
  • Entrepreneurs

Cite this