Relationship between Organizational Change and Failure in the Wine Industry: An Event History Analysis

Stoeberl, Phillipp A; Parker, Gerald E.; Joo, Seong‐Jong

doi:10.1111/1467-6486.00108

Cited by 45 publications

(38 citation statements)

References 24 publications

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“…The direction of this causality seems unambiguous, with a positive correlation between firm size and survival chances Ahmadjian and Robinson 2001;Kato 2010;Ramanujam 1984;Stoeberl et al 1998). For instance, Campbell et al (2008) find that Chapter 11 firms are on average ten times smaller than surviving firms.…”

Section: Sizementioning

confidence: 99%

Corporate distress and turnaround: integrating the literature and directing future research

Schweizer

Nienhaus

2017

Bus Res

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The topic of corporate distress and turnaround has been of interest to organizational change theory for many decades. This article considers existing reviews in discussing the current body of turnaround literature across multiple research fields and structures its work along a holistic framework. The numerous facets of corporate turnaround, resorting to general corporate restructuring research classifications, are clustered in a more detailed manner than those that merely rely on two commonly employed turnaround dimensions: ''retrenchment'' and ''recovery.'' The authors develop an agenda for future research based on this cross-disciplinary literature aggregation by highlighting current gaps and offering potential research questions. The review contributes to the understanding of corporate distress and turnaround by integrating different research streams. Additionally, the work emphasizes the need for further harmonization and operationalization in turnaround success metrics.

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Section: Sizementioning

confidence: 99%

Corporate distress and turnaround: integrating the literature and directing future research

Schweizer

Nienhaus

2017

Bus Res

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“…Since then, numerous studies found an inverse relationship between age and failure, explained by a lack of experience, structure and stability of young firms Freeman et al, 1983). Liability of newness and its high risk of failure can also be applied to established firms that have undergone drastic changes, because these changes often disrupt established routines (Amburgey et al, 1993;Hamilton, 2006); even though change can also increase survival chances if there is higher alignment with the environment (Haveman, 1992;Stoeberl et al, 1998). Finally, with respect to organizational size, and following from the concept of the liability of smallness, it is generally agreed that failure rate decreases with increased firm size (Freeman et al, 1983;Sutton, 1987).…”

Section: Understanding Corporate Failurementioning

confidence: 99%

On the Road to Disaster: Strategic Misalignments and Corporate Failure

Heracleous¹,

Werres²

2016

Long Range Planning

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Prior research has identified the link between strategic misalignment and corporate failure, but little empirical research to date has examined the process leading to misalignment and eventual corporate failure over time. To explore this crucial link, we conducted indepth case studies of two American conglomerates: WorldCom and Nortel Networks. We find patterns in terms of factors through which misalignments develop, ultimately leading to bankruptcy. The process begins with dysfunctional leadership and ineffective corporate governance, moving to unduly risky strategic actions, which are then followed by lax execution. Gradually spreading organizational misalignments develop, which ultimately foster a large gap between the demands of the competitive environment and the organization's strategy and competencies, leading to failure. An unforgiving external environment exacerbates the effects of misalignments. With this study, we also expand the ESCO strategic alignment model (Environment, Strategy, Core Competencies, and Organization), by adding leadership as the actor guiding alignment, and sustainable advantage as an outcome. IntroductionCorporate bankruptcy rates have soared. Between 2007 and 2010, total bankruptcy rates rose by 87.2% (Flynn and Kearns, 2011). Among the bankrupt organizations in recent years were numerous multinationals, once healthy and leading corporations such as General Motors, Delphi, Tribune Group, Conseco and Chrysler. Why do so many previously highly successful firms fail? Organizational failure can be brought about by strategic misalignments; e.g., an inappropriate strategy for the external environment, or a poor operationalization of the strategy. Strategic alignment is the consistency and synergy among the external environment, the strategy, core competencies, and organizational elements such as culture, organization design, processes and people (Heracleous et al., 2009). Conversely, strategic misalignment is inconsistency or tension among these elements.Whereas the link between strategic alignment and competitive advantage (and conversely misalignment and failure) has been recognized (Beer et al., 2005;Miles and Snow, 1984a;Powell, 1992) the processes of how strategic misalignments can develop over time and lead to corporate failure have not yet been explored. Despite their valuable contributions, most studies on corporate failure have adopted a fairly static orientation, rather than a time-sensitive, processual perspective of how a corporation can move towards failure (Zajac et al., 2000). In light of environmental dynamism, and the insights that can be afforded by a longer-term examination, scholars have called for research that examines fit and alignment "within a longitudinal perspective" (Venkatraman, 1989, 441). In our research, we take such a perspective and examine how misalignments can develop over time, ultimately leading to corporate failure.Are there typical patterns of strategic misalignments? What are the processes that can lead to failure if left unchecked, and can we id...

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“…Size is strongly related to organizational performance and survival (Stoeberl, Parker, & Joo, 1998). Larger facilities command greater internal resources, including a larger administrative staff, and may be more able to accommodate environmental change through internal restructuring.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Determinants of performance failure in the nursing home industry

Zinn

Mor

Feng

et al. 2009

Social Science & Medicine

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This study investigates the determinants of performance failure in U.S. nursing homes. The sample consisted of 91,168 surveys from 10,901 facilities included in the Online Survey Certification and Reporting system from 1996 to 2005. Failed performance was defined as termination from the Medicare and Medicaid programs. Determinants of performance failure were identified as core structural change (ownership change), peripheral change (related diversification), prior financial and quality of care performance, size and environmental shock (Medicaid case mix reimbursement and prospective payment system introduction). Additional control variables that could contribute to the likelihood of performance failure were included in a cross-sectional time series generalized estimating equation logistic regression model. Our results support the contention, derived from structural inertia theory, that where in an organization’s structure change occurs determines whether it is adaptive or disruptive. In addition, while poor prior financial and quality performance and the introduction of case mix reimbursement increases the risk of failure, larger size is protective, decreasing the likelihood of performance failure.

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Relationship between Organizational Change and Failure in the Wine Industry: An Event History Analysis

Cited by 45 publications

References 24 publications

Corporate distress and turnaround: integrating the literature and directing future research

Corporate distress and turnaround: integrating the literature and directing future research

On the Road to Disaster: Strategic Misalignments and Corporate Failure

Determinants of performance failure in the nursing home industry

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