A rush of blood to the head: Temporal dimensions of retrenchment, environment and turnaround performance

Barbero, José Luís; Pietro, Filippo Di; Chiang, Catherine

doi:10.1016/j.lrp.2017.02.004

Cited by 34 publications

(37 citation statements)

References 120 publications

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“…Fourth, we contribute to the threat-rigidity perspective by introducing one subtle but important precision: the importance of nuancing the type of threat and the moment of the threat to calibrate the consequences of the response. Last, our evidence confirms the pivotal role of the scant but emerging literature studying time and turnarounds that helps to unblock the current controversy concerning the value of retrenchment (Barbero, Di Pietro, et al, 2017; Tangpong et al, 2015).…”

supporting

confidence: 72%

“…Yet the value of volume aggressiveness has been subject to controversy given the mixed results obtained by the studies (Barker & Mone, 1994; Cascio et al, 1997; Pearce & Robbins, 1993). Second, though the literature has shown scant evidence of the temporal dimension (Barbero, Di Pietro, et al, 2017; Tangpong et al, 2015), it has strongly suggested its importance (Bibeault, 1982; Pearce & Robbins, 1993; Weitzel & Jonsson, 1989).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Timing is defined as the moment an event is initiated or is planned to be initiated (Huy, 2001). The timing of retrenchment is, then, the moment the retrenchment process is begun (Barbero, Di Pietro, et al, 2017). An extensive literature suggests that a turnaround, and more specifically, the retrenchment process, should be initiated earlier rather than later (Tangpong et al, 2015; Weitzel & Jonsson, 1989).…”

Section: Hypothesesmentioning

confidence: 99%

“…As a result, prescriptions have been unclear. Only recently has turnaround research paid attention to the other dimension, time aggressiveness, with promising results (Barbero, Di Pietro, & Chiang, 2017; Tangpong, Abebe, & Li, 2015).…”

mentioning

confidence: 99%

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Should Declining Firms Be Aggressive During the Retrenchment Process?

Barbero¹,

Martínez

Moreno

2018

Journal of Management

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In this study, we test the effects of retrenchment aggressiveness on turnaround performance. Using the downward-spiral, threat–rigidity, and survivor syndrome perspectives, we hypothesize the direct effects of the two dimensions of aggressiveness—time aggressiveness and volume aggressiveness—on turnaround performance. We also examine the moderation effect of time aggressiveness on the relationship between volume aggressiveness and turnaround performance. We use data on a sample of declining firms collected from the Compustat North America database and use a matched-pair sample of 494 surviving and nonsurviving firms between the years 1990 and 2010. Our results show that time aggressiveness has a positive effect on turnaround performance, whereas volume aggressiveness has a negative effect. We also find that time aggressiveness positively moderates the negative relationship between volume aggressiveness and turnaround performance. We contribute to the scant but critical literature indicating the importance of time in a turnaround setting and to the long-held discussion of retrenchment as a cause of turnaround or a consequence of decline.

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supporting

confidence: 72%

Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Hypothesesmentioning

confidence: 99%

mentioning

confidence: 99%

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Should Declining Firms Be Aggressive During the Retrenchment Process?

Barbero¹,

Martínez

Moreno

2018

Journal of Management

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“…On this premise, it seems arguable that corporate pathologies, which are physiologically present in the firm's life cycle, become totally evident to the external environment only when entering their most acute stage (Tangpong, Abebe & Li, 2015;Barbero, Di Pietro & Chiang, 2017). This is why, in this article, we have adopted a strategic management perspective to explain the most significant characteristics of corporate crises, thanks to the numerous studies developed over time at an international level.…”

Section: Discussionmentioning

confidence: 99%

Reviewing Corporate Crises: A Strategic Management Perspective

Abatecola¹

2019

IJBM

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How can be crises classified? What does the term “corporate crisis” mean? Corporate crises have always been a topic of tremendous interest for both the research in and practice of strategic management at an international level. Attention has been given to elaborating appropriate interpretative conceptualizations, together with implementing effective and efficient predicting and countervailing models. To date, scholars have seemingly reached consensus as to the meaning of crises. Conversely, identifying determinants and temporal dynamics still seems to be a lively question to address. This is why in this article we critically review the state of the art on the topic, from which we derive some important implications for the present and future research and practice in the strategic management field.

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Fostering SME survival through insolvency proceedings: a legitimacy perspective on retrenchment, age, and firm-specific distress

Achbah,

Fréchet

2024

Small Bus Econ

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A rush of blood to the head: Temporal dimensions of retrenchment, environment and turnaround performance

Cited by 34 publications

References 120 publications

Should Declining Firms Be Aggressive During the Retrenchment Process?

Should Declining Firms Be Aggressive During the Retrenchment Process?

Reviewing Corporate Crises: A Strategic Management Perspective

Fostering SME survival through insolvency proceedings: a legitimacy perspective on retrenchment, age, and firm-specific distress

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