Do you have any evidence of this? At all?
Because here's what I see:
Linux has remade the software world in its own image. I'd hardly call that "failing". Real actual super computer companies (e.g. Silicon Graphics) stopped developing their own OS and started shipping Linux.
Microsoft, the arch nemesis of Linux and Open Source, is shipping kernel patches and releasing code under open source licenses.
What does "success" look like to you?
And lest you say "that's just a singular case", we can look at Theo and OpenBSD. OpenBSD has been wildly successful, both as a BSD fork, but also in its broader mission to cultivate a software culture of excellence and correctness, with results that speak for themselves.
Linux and OpenBSD are two of the oldest open source projects around, with two pretty intense personalities at the helm.
I see no evidence to support your claim whatsoever.