Affiliations: Department of Economics and Finance, Hong Kong Shue Yan University, North Point, Hong Kong
Correspondence:
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Corresponding author: Fu-Lai Tony Yu, Department of Economics and Finance, Hong Kong Shue Yan University, North Point, Hong Kong. Tel.: (852) 28065174; Fax: (852) 28068044; E-mail: [email protected]
Abstract: This study investigates the sinking of the Titanic from the theory of human agency derived from Austrian economics, interpretation sociology and organizational theories. Unlike most arguments in organizational and management sciences, this study offers a subjectivist perspective of mental inertia to understand the Titanic disaster. Specifically, this study will argue that the fall of the Titanic was mainly due to a series of coordination and judgment failures that occurred simultaneously. Such systematic failures were manifested in the misinterpretations of the incoming events, as a result of mental inertia, by all parties concerned in the fatal accident, including lookouts, telegram officers, the Captain, lifeboat crewmen, architects, engineers, senior management people and owners of the ship. This study concludes that no matter how successful the past is, we should not take experience for granted entirely. Given the uncertain future, high alertness to potential dangers and crises will allow us to avoid iceberg mines in the sea and arrived onshore safely.
Keywords: The R.M.S. Titanic, maritime disaster, coordination failure, mental inertia, judgmental error, Austrian and organizational economics
