Coordination failure is a term used to describe a situation where the interdependency of parts within a collective or system fail to produce the intended outcome or results. It often occurs when it is difficult to anticipate or share complex knowledge, when unclear incentives or incentives misalignment between actors exist, or when coordination costs are so high it becomes difficult to incentivize cooperation. In these cases, it may be difficult to achieve favorable collective outcomes in large groups due to the inability of individuals to properly coordinate and cooperate. Coordination failure ultimately undermines the effectiveness of the collective and creates a breakdown in collective productivity.

See also: collective action, complexity science, decision making, collective intelligence, network theory