Theoretical Review of Turnaround Strategy and Its Organizational Outcomes

Abstract

Strategic management literature has recognized the role of turnaround strategy in the management process as a critical strategy at the corporate level. Researches done on turnaround strategy and corporate performance have however been biased with respect to limited scope in terms of the dimensions of performance as well as the challenges in methodology and conceptualization that affect the generalization of the study findings. This paper undertakes a review of the extant literature on the conceptual, theoretical and empirical work that brings about a number of issues for use in presenting a case for the new theoretical model that is suitable for extension of the current understanding of deployment of turnaround strategy and the ultimate results. The paper suggests an integrated theoretical framework for use in linking turnaround strategy and corporate performance while recognizing the significance of the role of organizational turnaround-based learned experiences and organizational characteristics.