Review of literature on turnaround strategy in banking

Abstract

Purpose of the study: The business cycle always occur in banking activities. For that reason, banks often prepare a turnaround strategy to keep banking growing during changes of business cycles during which often happen during changes in the economic situation or changes in the regulation of a country. This article reviews study on banking turnaround strategy (in conventional and Islamic banks) regarding to the model turnaround strategy by Schoenberg, Collier, and Bowman (2013) from January 1990 to December 2017, in order to identify the current state of study and research gap. The publications were classified into process-orientated strategies and content-orientated strategies. The process-orientated strategies were divided into cost efficiencies, asset retrenchment, focus on core activities and build the activities. Meanwhile, the content-orientated strategies were classified into the changes of organisational structure and culture change. Methodology: This paper focuses on peer-reviewed Economy journal, excluding book and book chapters. The keywords included „turnaround strategy in banking‟ and „business cycle‟. Articles were only selected if they directly addressed into turnaround banking and the business cycle. The sample was generated by applying a keyword search on Mendeley database. Main Findings: There were 122 out of 250 in the sample analysed on the banking turnaround strategy. The majority of studies were concerned with the process-oriented strategies (such as the focus on core activities and build of the activities). Applications of this study: This study can be useful for strategic management of banking Novelty/Originality of this study: The implementation of turnaround model strategy by Schoenberg, Collier, and Bowman (2013) as the management strategies during the recovery process in banking.