Leadership in times of organizational decline: a literature review of antecedents, consequences and moderators

Abstract

<jats:sec> <jats:title content-type="abstract-subheading">Purpose</jats:title> <jats:p>Despite the recent increase in scholarly interest on organizational decline, the theoretical and empirical inquiry into this topic remains largely disintegrated. Therefore, leaders in corporate settings who are confronted with critical strategic management challenges are ill equipped for orchestrating successful turnaround attempts to secure the revival of their organizations. The purpose of this paper is to bridge this gap in the organizational decline literature.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title> <jats:p>In this paper, the authors undertake a systematic review of the specialized literature with the purpose of providing an updated account of the extant knowledge base and assisting top managers in their efforts of corporate recovery.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Findings</jats:title> <jats:p>Drawing upon the insights from a number of prior literature reviews and the evidence provided in the sampled studies, this research framework offers an in-depth discussion of major antecedents, consequences and moderators of organizational decline.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Originality/value</jats:title> <jats:p>The authors seek to make a discerned contribution to the field by advancing a multi-domain agenda for future research that may animate the continuous debate on the most effective strategies and leadership practices for surviving firm decline.</jats:p> </jats:sec>

Workaholism and Technostress During the COVID-19 Emergency: The Crucial Role of the Leaders on Remote Working

“…In this context of change and crisis, leadership plays a crucial role ( Bartsch et al, 2020 ; Bodolica and Spraggon, 2020 ). Research examining the role of leadership behavior in the context of planned organizational change is well established (e.g., Oreg and Berson, 2019 ; Sverdlik et al, 2020 ), and more recent studies in response to the pandemic crisis have focused on “being a smart leader” or an “e-leader” ( Cortellazzo et al, 2019 ; Iannotta et al, 2020 ) while also at the same time, being an effective leader ( Bartsch et al, 2020 ).…”

Turnaround and human resource strategies during the COVID-19 crisis

“…Management needs to identify both the root and timing of the decline in terms of awareness of the decline ( Santana et al, 2017 ). External antecedents or industry contraction–based decline are grounded in the company’s exogenous interactions ( Arogyaswamy et al, 1995 ; Bodolica & Spraggon, 2020 ; Whetten, 1987 ) and are related to technological, competitive, economic, political, cultural, legal or industry changes, and, most recently, the COVID-19 pandemic ( Bodolica & Spraggon, 2020 ; Brown & Kline, 2020 ; Datta et al, 2010 ; Mellahi & Wilkinson, 2004 ; Scherrer, 2003 ; Trahms et al., 2013 ). Arogyaswamy et al (1995) divided the external or industry contraction–based decline into cyclical or long-term decline.…”

“…Conversely, internal sources or firm-based causes are those that managers can control (e.g. : employees, resources, and activities), such as financial or operational problems, lack of innovation, employee attributes, governance, and leadership dysfunctionalities ( Arogyaswamy et al, 1995 ; Bodolica & Spraggon, 2020 ; Scherrer, 2003 ; Trahms et al, 2013 ).…”

International business competence and innovation performance: the role of ambidextrous organizational culture andenvironmental dynamism

“…Our study has important implications for companies engaged in business operations across national boundaries. First, global organizations that strive to remain competitive by maintaining consistently high levels of innovation despite the heightened turbulence in the external environment (Bodolica & Spraggon, 2021) Fostering a specific type of organizational culture and a set of competences that can contribute to their staying innovative could help compensate for these shortcomings. Consistent with our suggestion, small businesses with a higher level of IBC have been previously found to perform better in foreign markets (Knight & Kim, 2009).…”