Near failures as strategic inflection points

Purpose This study introduces near failures as disruptive, non-terminal events that reveal hidden vulnerabilities and catalyse strategic recalibration and resilience. Design/methodology/approach Employing an in-depth case of a founder-led enterprise that faced a severe but avoided collapse, this study uses semi-structured interviews and supporting documents to develop a conceptual model grounded in dynamic capabilities, absorptive capacity and resilience theories. Findings Near failures initiate cognitive reframing, strategic experimentation and adaptive learning, bypassing organizational breakdown. These episodes unfold through a structured process – identification, assessment, experimentation and institutionalization – leading to lasting individual and organizational transformation. Findings are context-bound but offer transferable insights for similar entrepreneurial settings. Research limitations/implications A framework is presented to help leaders harness near failures as opportunities for reflective adaptation and proactive resilience in volatile environments. Practical implications The four-step model enables managers to identify, assess, experiment with and institutionalise near failures for adaptation, innovation and resilience. Social implications Integrating near failures into governance systems provides organisations and institutions with proactive foresight, enabling them to anticipate disruption, mitigate systemic risks, and drive sustainable transitions aligned with economic resilience, social equity, and environmental stewardship. Originality/value By positioning near failures as a distinct construct – separate from near misses and catastrophic failures – this study offers novel theoretical and practical insights for managing disruption and enabling strategic agility.