Some Recommendations For Improved Research on Corporate Turnaround

Abstract

Despite the frequent incidence of corporate turnaround and over two decades of research effort, our understanding of the phenomenon is very incomplete. A review of forty-seven studies of turnaround reveals two main reasons for this state of affairs. Firstly, problems with research design: the phenomenon has been poorly defined resulting in unrepresentative cases being selected for analysis; many important research questions have either been ignored or asked too infrequently resulting in explanations that are simplistic; and, the validity of the findings of qualitative studies is limited due, on the whole, to poor methodological execution. Secondly, investigations have largely been ad hoc in that they have either proceeded without a priori theoretical guidance or have failed to relate findings to extant theory ex post. Recommendations for future research based on stronger research designs and stronger theory are advanced in the hope that rapid advancement will ensue.