The Aftermath Of Organizational Decline: A Longitudinal Study Of The Strategic And Managerial Characteristics Of Declining Firms

D'Aveni, Richard A.

doi:10.5465/256435

Cited by 124 publications

(153 citation statements)

References 22 publications

Supporting

Mentioning

143

Contrasting

Unclassified

Order By: Relevance

“…As we aim to understand company strategies in the era of crisis and austerity, it is worth turning our attention also to research on decline, turnaround strategy and the two main responses to decline, retrenchment and recovery strategies (Pearce and Robbins, 1993;Robbins and Pearce, 1992). Decline is the deterioration of a company's performance due to persistent problems (see, e.g., Cameron et al, 1987;Carmeli and Schaubroeck, 2006;D'Aveni, 1989;Francis and Desai, 2005;McKinley et al, 2014;Musteen et al, 2011). When decline is not properly addressed, it may result in the company's extinction (Francis and Desai, 2005).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

How National Institutions Limit Turnaround Strategies and Human Resource Management: A Comparative Study in the Airline Industry

Santana

Cabrera

Galán-González

2018

European Management Review

View full text Add to dashboard Cite

The influence of national institutions, particularly employee representation, on managers’ turnaround strategies remains largely unexplored in the literature. Therefore, this paper assesses the pressures that affected two European airline companies, British Airways (BA) and Iberia, and their turnaround responses in a context of economic crisis and austerity, particularly from the perspective of strategic human resource management (SHRM). Our case studies show that when national institutions grant a number of rights to employee representatives, an innovative HRM strategy enables the recovery strategy required to deal with internal sources of decline. In contrast, when national institutions provide fewer rights to employee representatives, there is room for company HRM strategy to challenge or resist institutional pressures. Our research focuses particularly on how coercive pressures exerted by employee representation, according to the legal framework governing labor relations, affect turnaround strategies.

show abstract

Section: Theoretical Frameworkmentioning

confidence: 99%

How National Institutions Limit Turnaround Strategies and Human Resource Management: A Comparative Study in the Airline Industry

Santana

Cabrera

Galán-González

2018

European Management Review

View full text Add to dashboard Cite

show abstract

“…The overall sample thus consisted of 66 firms: 33 firms identified as having a stigmatized board and 33 control firms not identified as having a stigmatized board. It is noteworthy that, while matched-pair designs do have limitations, they are considered appropriate for studying phenomena where the base rate of occurrence is low, such as companies with boards that become stigmatized (e.g., Arthaud-Day et al, 2006;Cannella et al, 1995;Daily, 1996;Daily andDalton, 1994a, 1994b;D'Aveni, 1989;Gales and Kesner, 1994;Hambrick and D'Aveni, 1988).…”

Section: Sample and Datamentioning

confidence: 99%

Service on a Stigmatized Board, Social Capital, and Change in Number of Directorships

Wurthmann¹

2014

J Management Studies

View full text Add to dashboard Cite

This article seeks to develop a nuanced understanding about the relationship between service on a stigmatized board and reduced opportunities for future directorships on other boards by examining the moderating effects of different dimensions of director social capital on this relationship. Evidence based on a unique sample of firms with boards that were viewed as being stigmatized by a group of corporate governance experts suggests that while serving on a stigmatized board is related to a reduction in future number of directorships held, this relationship is significantly mitigated for directors of upper‐class origins. However, social capital related to affiliations with other elite institutions does not appear to mitigate reduction in future number of directorships held by outside directors who serve on a stigmatized board. Implications and future directions in research on class‐based influence in the corporate community and stigmatization and devaluation of elites associated with corporate failures are discussed.

show abstract

“…For the purpose of the present research however, we define crisis-failure as an event or condition (or a series of events and conditions) that could lead to severe market-share erosion (Starbuck, Greve and Hedberg, 1978). Symptoms include declining demand, sharp declines in sales and reduced or negative profitability (D'Aveni, 1989a;Hambrick and D'Aveni, 1988). The terms crisis, decline or failure will be used interchangeably in the present exploratory research, although we recognize that there are theoretical debates about the appropriateness of so doing.…”

Section: Organizational Crisis and Failurementioning

confidence: 99%

An Exploratory Study into Failure in Successful Organizations: The Case of Marks & Spencer

Mellahi

Jackson

Sparks

2002

British J of Management

112

View full text Add to dashboard Cite

Marks & Spencer (M&S) was one of the world’s great retailers, enjoying legendary and iconic status, being often held up as one of the best managed and admired businesses in the world. Its ‘fall from grace’ has been spectacular and dramatic and the company is currently fighting for its life. Based on extensive in‐depth interviews with company managers and utilizing a case‐study approach, this paper provides an exploratory study into failure at M&S and presents this in the context of the wider literature on organizational and managerial failure. It concludes that whilst external factors in the various trading environments affected the business, there were internal aspects of the crisis which exacerbated the situation and the problems.

show abstract

The Aftermath Of Organizational Decline: A Longitudinal Study Of The Strategic And Managerial Characteristics Of Declining Firms

Cited by 124 publications

References 22 publications

How National Institutions Limit Turnaround Strategies and Human Resource Management: A Comparative Study in the Airline Industry

How National Institutions Limit Turnaround Strategies and Human Resource Management: A Comparative Study in the Airline Industry

Service on a Stigmatized Board, Social Capital, and Change in Number of Directorships

An Exploratory Study into Failure in Successful Organizations: The Case of Marks & Spencer

Contact Info

Product

Resources

About