This article addresses a key issue: is strategic planning rewarded by the stock market? Using event‐study methodology, this article examined the market values of companies during…
Abstract
This article addresses a key issue: is strategic planning rewarded by the stock market? Using event‐study methodology, this article examined the market values of companies during the time period that they revealed information about their strategic planning focus, function or orientation. The results indicate that the stock market favors the long range‐planning horizon adopted by companies.
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John D. Francis and Ashay B. Desai
To test the ability of situational variables, manageable pre‐decline resources, and specific firm responses to decline to classify performance outcomes (turnaround vs…
Abstract
Purpose
To test the ability of situational variables, manageable pre‐decline resources, and specific firm responses to decline to classify performance outcomes (turnaround vs non‐turnaround) in declining firms.
Design/methodology/approach
Using a longitudinal methodology and a multi‐firm sample, the paper studies the relative role of situational factors concerning the environment and a firm's decline, along with various internal resources and strategies that can enable a firm to recover from decline.
Findings
The results indicate that contextual factors such as the urgency and severity of decline, firm productivity and the availability of slack resources, and firm retrenchment can determine the ability of sample firms to turnaround. Overall, factors under the control of managers contribute more to successful turnarounds than situational characteristics.
Research limitations/implications
This study does not identify the exact cause of firm decline. The authors believe this is beyond the scope of this multi‐firm study.
Originality/value
This study contributes to the existing research by theoretically explicating and empirically testing the influences of multiple situational and organizational factors on turnaround outcomes. While several studies have investigated conceptually unique sets of actions applied by managers attempting to turn around declining firms, this paper integrate these actions as they can often impact each other and the eventual turnaround. The authors believe their research design affords a more holistic view to the turnaround process. In order to direct executives efforts, the findings are summarized into some practical applications.
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Ashay Desai and Ananda Mukherji
Vertical integration across three different types of economies and selected industries is studied to trace historical, political, and economic influences on the evolution of…
Abstract
Vertical integration across three different types of economies and selected industries is studied to trace historical, political, and economic influences on the evolution of vertically integrated structures. Specifically, the focus in this article is on the industrial development that took place in Germany, the UK, Japan and the USA. The role of a domestic market, colony markets, and attempts to become a dominant colonizer all play a significant role in the development of various industries, and the efficiency levels that they attained. The role of government, the level of international competition, and other integration drivers salient in the eighteenth and nineteenth centuries are also discussed. A broad view of structural and contextual forces provides a better understanding of why certain industries chose to integrate the way they did.