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The purpose of this study is to provide a comprehensive understanding regarding corporate turnaround. An integrated discussion regarding different corporate failure factors, conditions, symptoms followed by turnaround strategies and its results have been provided.

Authors have done a comprehensive systematic and integrated literature review study of research articles on corporate turnaround. The paper reviewed discussed different dimensions of turnaround management. The authors applied thematic reductionist categorisation with logical arguments to develop an integrated turnaround canvas (ICT).

An ICT has been developed. ICT is a holistic framework to comprehend turnaround strategy. Impact of precondition and turnaround levers on cash flow dynamics and the operational and strategic levers for successful turnaround performance of the firm has also been presented. Authors have also tabulated the entire spectrum of corporate turnaround.

This conceptual work would help researchers interested in turnaround research to anchor their study at different points in ICT canvas. This could be at the decline precondition stage, corporate failure state, turnaround levers (strategic and operational) application phase and in terms of turnaround performance.

The ICT canvas would help managers to identify the set of corporate failure preconditions which might lead their firm to decline phase. The ICT canvas would also help managers based upon the identification of decline preconditions to select an appropriate turnaround interventions required to arrest the corporate failure. Finally, the ICT canvas would help in identifying the operational and strategic levers for successful turnaround implementation and thus achieving the desired corporate performance.

This is one of the first studies to provide an integrated perspective on corporate turnaround as the developed ICT canvas consisted of identification of decline preconditions, corporate failure, turnaround levers (strategic and operational ) and turnaround performance.

Despite an improved understanding of the role of top executives in declining firms, research is still needed to explore the role of environmental scanning and strategy formulation processes in an organizational decline context. Drawing from the attention‐based view and the literature on environmental scanning, the purpose of this paper is to examine the relationship among executive attention patterns, industry dynamism and corporate turnaround performance in declining firms.

In order to test theoretically‐driven hypotheses, data were collected from 70 US manufacturing firms that experienced serious performance decline and subsequent performance turnaround between 1990‐2000. The hypothesized relationships among market‐related, input‐related environmental scanning, industry dynamism and corporate turnaround performance were tested using a moderated regression analysis.

The findings indicate that declining firms operating in dynamic industry environments tend to improve their turnaround performance when executives focus their attention more on market‐related sectors (i.e. customer, competitor and technological sectors). Conversely, the findings also indicated that corporate turnaround performance of declining firms seems to be adversely affected by a disproportionate focus on input‐related sectors of the task environment (i.e. suppliers and creditors).

The paper's findings contribute to the ongoing corporate turnaround research by highlighting the important role executive attention patterns and selective perceptions play in improving the extent of corporate turnaround in declining firms. More importantly, the findings also indicate that environmental context (in this case dynamism) is a critical part of successful corporate turnaround since it dictates the impact of relevant external actors on the organization.

Executives of declining firms attempting turnaround may find it particularly useful, based on the paper's findings, to focus their attention and information search on specific aspects of the task environment in order to facilitate corporate turnaround. Such focus becomes especially necessary if the declining firm is operating in dynamic industries.

The paper contributes to the corporate turnaround literature by highlighting the importance of both executive attention patterns and environmental context in any successful turnaround attempt.

The purpose of this study is to empirically examine the effect of top management team (TMT) characteristics on corporate turnaround performance in declining firms under conditions of environmental stability and turbulence.

Theoretical hypotheses were developed and tested using data collected from 98 US manufacturing firms that experienced performance decline and turnaround during the periods 1990‐1994 and 1995‐2000 respectively. Data were collected from the COMPUSTAT database and annual filings and analyzed using a moderated regression analysis.

The results of moderated regression analysis indicate an adverse effect of long organizational tenure on corporate turnaround, especially in turbulent environments. Hence, if was found that the effect of top team composition on corporate turnaround varies depending on the environmental context.

The study contributes to the ongoing corporate turnaround research by examining the interplay between TMT characteristics and turnaround performance under different environmental contexts. Consequently, the findings of the study suggest that the environmental context in which declining firms operate matter just as much as the nature and characteristics of their top team in determining the success of their turnaround attempt.

The results of the study shed some light on corporate governance issues, specifically on the importance of matching top management change efforts in declining firms with the respective environmental context.

The study contributes to the corporate turnaround literature by addressing the recent call for research in the TMT‐turnaround relationship under environmental contingencies (i.e. environmental stability/turbulence).

The purpose of this paper is to empirically examine the relationship between chief executive officer characteristics and corporate turnaround performance of declining firms attempting turnaround.

A sample of 60 US manufacturing firms that experience severe performance decline and turnaround from 1985 to 2000 are selected from a population of declining manufacturing firms in the COMPUSTAT database. Data on leadership characteristics are collected and analyzed using ordinary least square regression analysis and ANOVA.

The general findings of the study provide empirical support for the upper echelons theory that emphasizes leadership characteristics as predictors of organizational outcomes. More specifically, the findings suggest the strong and adverse influence of long executive tenure on corporate turnaround performance. The findings also indicate that executives with output‐related functional background positively influence corporate turnaround performance in declining firms attempting turnaround.

The findings of this paper have important implications for corporate governance issues in declining firms attempting turnaround. In addition, the findings also lend further empirical support for the role of strategic leadership in shaping organizational outcomes especially under declining environmental conditions.

This paper contributes to the turnaround literature by providing empirical evidence on the role of strategic leadership in formulating and implementing turnaround strategies in declining firms. It also provides further support for the upper echelons perspective and strategic decision making.

The paper aims to provide a longitudinal view of successful turnaround phases and of how management accounting practices played a significant role in improving performance in one company.

The company provided internal documents to cover the period of the study and permitted access to key individuals who were able to elaborate and clarify the motives which underpinned the numbers reported and the strategies employed.

The success of the corporate turnaround appeared to be attributable to an effective leadership style that was able to motivate and support the employees whilst making strategic changes to the organization's capital, financial well‐being and operations.

Recognition of the key factors in the turnaround process has implications for the implementation of corporate recovery strategies elsewhere.

In this paper, the authors aim to build a prescriptive framework to help managers in turning around their ailing organizations. Their framework focuses on the extent of contractionary and expansionary initiatives needed to rebuild long‐term competitive advantage. They make the case that managers engaging in a pro‐active and balanced approach to scaling down and growing their organizations can boost the success of their recovery efforts.

The authors build their framework based on academic research on corporate turnarounds, their scholarly work on corporate restructuring, and their combined experiences and observations in industry. Their framework proposes four possible outcomes of the turnaround process: comeback, adrift, running‐on‐empty, and collapse. They provide examples to describe each outcome.

The authors' framework suggests that the interaction between two restructuring actions – retrenchment and repositioning ‐ determines the outcome of corporate turnarounds. By overemphasizing downsizing, managers fail to jumpstart entrepreneurial growth that can propel the firm towards long‐term competitive advantage. Similarly, stresses arising from excessive growth programs can quickly drain firm resources. As such, all managers need to assess the alignment between downsizing efforts and growth‐oriented initiatives. By bringing awareness to the interdependency between retrenchment and repositioning, the authors' framework can guide managers in making necessary adjustments on the way to fixing their organization.

Retrenchment and repositioning represent the means available to managers attempting corporate turnaround. However, corporate turnarounds often fail due to an overemphasis on one phase of the restructuring process, at the expense of the other. This framework points to the delicate retrenchment‐repositioning required to achieve successful turnaround.

The paper aims to assess the impact of corporate strategy on shareholder value in decline and turnaround situations.

A sample of 45 turnaround firms was selected and matched against a control sample which did not face continuous decline over the time period studied. The impact of corporate strategy on shareholder value was tested using cumulative beta excess return measures to capture the long‐term basis of corporate strategy.

The paper finds that the beta excess return measures captured the hypothesized relationships between strategy and shareholder value for the sample firms studied.

Beta excess return measures are superior to case studies or event studies for identifying the long‐term effects of corporate strategy.

Relatively few studies have compared the strategies of turnaround firms with a matched sample of non‐declining firms. The use of cumulative beta excess returns to assess long‐term valuation of corporate strategy is original.

The purpose of this paper is to report on a research study aimed at comparing the causes of organisational decline and turnaround strategies involved in cases of successful and unsuccessful turnarounds, with a view to identifying the differences, if any, between the two groups, which in turn is expected to provide useful information to academics, practitioners and policy makers.

Since turnaround is a business phenomenon of general interest, their stories are often published in business periodicals, which are a rich source of data on them. In order to tap this data source, the present paper employed a method of content analysis for the proposed investigation on the cause of organisational decline and turnaround strategies used. In order to quantify the data, a three-point scale was developed, where the presence of a cause/strategy is rated as “3”, its ambivalence as “2” and its absence as “1”, whose validity was assessed through the inter-rater agreement indices. The data thus generated are amenable to statistical analyses, using which the more commonly prevalent causes of organisational decline and the strategies commonly employed for turnaround by the successful and unsuccessful companies are identified.

The findings of the present study have generated a few useful insights. First, the primary causes for organisational decline are the internal weaknesses of the organisation; in fact the external changes can adversely affect the organisation only if it is internally weak. Second, organisational decline caused by multiple factors (which is usually the case) can be managed effectively by adopting a variety of strategies; hence a single-pronged strategy is often found to be ineffective. Third, the more successful turnarounds had a diverse portfolio of strategies including those of institution-building, often employed in a phased manner, consistent with the stage theories of turnaround.

The limitations of this research arise mainly from the generation of data from published sources and the consequent biases, which can be managed, to a large extent, by using multiple sources for the same case for reducing the publishers’ biases as well as by having multiple raters for identifying the researcher’s biases, if any.

The study has highlighted the need for addressing the internal causes of organisational decline on a priority-basis rather than blaming the external factors, besides pointing to the need for adopting a variety of strategies for dealing with the diversity of causes affecting the organisation’s health, particularly the need for institutionalising the changes. These findings can be of help especially to turnaround managers and policy-makers in dealing with organisational decline and thus contribute to the creation and enhancement of economic value.

Drawing on variables cited in the turnaround literature, this study aims to explore whether information contained within annual reports is useful in distinguishing between distressed companies that enact a turnaround and those that fail.

This study develops a discriminant model to identify distressed companies that have turnaround potential.

Analysis of the results reveals that successful turnarounds are associated with the severity of the distressed state, its determinants, with the extent of change in the distressed state since the previous year, and firm size.

This article is of use in identifying what information is useful in annual reports.

This study aims to investigate the nexus of high‐performance work systems (HPWS) with corporate change that leads to enhanced performance.

The paper uses a case study method and analyzes the impact of a HPWS, adopted at a German medical technology company, on corporate turnaround and performance outcomes. In the present study, conducting in‐depth interviews with the social partners of corporate change, the authors investigate how leadership, competition forces and employee relations interacted with a bundle of high‐performance work practices led the company to massive changes in production with noticeable performance outcomes.

The analysis lends support to the HPWS approach that links certain high‐commitment work practices to corporate changes and enhanced performance outcomes such as rising employee productivity and sales over the last decade.

The study pinpoints key factors that could optimally be used as a best practice framework for change management leading to corporate turnaround in a highly volatile world economy.

The HPWS approach, facilitating corporate turnaround, underlines the importance of social partnership for modern corporations to handle groundbreaking changes and survive the fierce competition in global markets.

Using a case study method, the analysis lends some support to the HPWS perspective that links high‐commitment work practices to enhanced corporate performance.