This article includes observations and principles to assist managers in their efforts to lead subordinates and themselves through failure.

Article provides insight into the strategic behaviors of firms facing slow growth in times of economic stagnation. Using the pertinent literature from institutional theory and organizational change, the authors posit that the appropriate firm-level response (strategic choice) during periods of slow growth is to maintain legitimacy and membership in the field by adopting a proactive approach that focuses on improving top-line growth.