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Turnaround: Retrenchment and recovery
Author(s) -
Robbins D. Keith,
Pearce John A.
Publication year - 1992
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250130404
Empirical research was conducted to investigate retrenchment as an integral component of the overall turnaround process. An industry study provided an anchored operational definition of a turnaround situation, indications of its internal and external causes, and an application of an absolute measure of its severity. The research further produced an empirical discrimination between retrenchment as a stand‐alone response to financial decline and retrenchment as an initial phase of a turnaround strategy, and an identification of activities that can be used to classify entrepreneurial vs. efficiency emphases in a turnaround firm's recovery response.