The application of nonlinear change theory to the demise of Saambou bank

Abstract

Nonlinear change represents the latest in a series of change concepts that reflect a change in the complexion of organisational change itself. Nonlinear change theory provides an alternative and potentially useful framework from within which to view seemingly dramatic corporate failures. To test its utility value, an attempt is made to fit the sequence of primary events preceding the demise of Saambou Bank to a nonlinear change framework. This application of the theory suggests that some value can be derived from its use – in particular as it provides an extended temporal perspective and can potentially further illuminate the unfolding dynamics in such cases. The implications of nonlinear change theory are briefly discussed.