ABSTRACT
This chapter addresses some questions: What does failure means in the context of organizations, other than final dissolution? Under what conditions are failing organizations more likely to survive than to desist? Do organizations have some kind of self-protection that resembles the immunity system of organisms? What kind of external forces can support failing organizations and prevent their downfall and for what purposes? Thus, failing organizations are most likely to survive, although under much harsher conditions, as long as they have gained legitimacy and can enjoy its benefits. Another contextual factor that plays a role in the survival of failing organizations is the type of ownership. However, in the longer run, the "dependability" level of a failing organization declines until it reaches a minimal (acceptable) level, below which it is compelled to declare bankruptcy. However, should a government decide to privatize a permanently failing organization of any kind, it is likely to encounter resistance on the part of the employees.
