 Firm Turnarounds: an Integrative Two‐Stage Model*Kamala Arogyaswamy, Vincent L. Barker and Masoud Yasai‐Ardekani Journal of Management Studies, 1995, vol. 32, issue 4, 493-525 Abstract: This paper presents a model proposing that turnaround firms exhibit two classes of response to decline: (a) decline‐stemming strategies that reverse the dysfunctional consequences of decline, and (b) recovery strategies that position the firm to better compete in its industry. We further propose that effective top management actions supporting both of these strategies are vital to recovering from decline. Our model of the turnaround process questions some existing assumptions about turnarounds and extends theory in several key areas. First, we argue that success in initially stemming decline requires managers to go beyond retrenchment or focusing on financial issues to include effective management of a firm's external stakeholders and internal climate and decision processes. Second, we outline important contingencies impacting each class or stage of response to decline and discuss the interaction between stages. Finally, we demonstrate how our model provides explanations for several unresolved issues regarding turnarounds and has implications for management practice. Date: 1995 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:jomstd:v:32:y:1995:i:4:p:493-525 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Management Studies is currently edited by Timothy Clark, Steven W. Floyd and Mike Wright More articles in Journal of Management Studies from Wiley Blackwell |
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