The decline of large Brazilian companies

Torres, Alexandre; Menezes, Emílio Araújo; Serra, Fernando Antônio Ribeiro; Ferreira, Manuel Portugal

doi:10.22495/cocv8i4c1p7

Cited by 7 publications

(9 citation statements)

References 60 publications

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“…We must analyze over time and, as shown by Torres, Serra, Ferreira and Menezes (2011), we can trace a company's declining performance. Decline can be detected through performance pattern indicators (these are often financial or economic measurements), but the symptoms, causes and decisions that influence decline, and even the first signs of trouble, can be seen in the years prior to decline (D'Aveni, 1989b;Hambrick & D'Aveni, 1988).…”

Section: Challenges To Overcome When Conducting Research On Decline Amentioning

confidence: 99%

“…At that time, in the late 1970s and 1980s, American companies were facing strong competition from Japanese industries and these companies' performance was affected. Considering the importance given by authors in books for a professional audience (e.g., Collins, 2009;Damodaran, 2011;Hamel, 2012;Pfeffer & Sutton, 2006) and the impact of decline on mature and apparently successful companies (Torres, Serra, Ferreira, & Menezes, 2011), this theme merits further investigation. Given the evidence that even successful companies can go into decline, which is nothing new, we assume that the study of a variety of issues pertaining to organizational decline would attract the attention of researchers.…”

Section: Introductionmentioning

confidence: 99%

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Organizational Decline Research Review: Challenges and Issues for a Future Research Agenda

Serra

Pinto

Guerrazzi

et al. 2017

BAR, Braz. Adm. Rev.

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Organizational decline is related to the deterioration of the resource base and performance of an organization for a sustained period of time. Although some studies have been conducted, it remains an understudied phenomenon, despite its importance. The study of organizational decline is faced with challenges to improving and increasing research. In this study, we analyze the scientific field of organizational decline in business and management journals with a high impact factor. We conducted a mixed-method study: a bibliometric study of a sample of 214 articles, and a qualitative study with 41 authors. We used an analysis of citations, co-citations and factor analysis. This enabled the identification of the most influential works and their conceptual approaches. The interviews with the authors were analyzed using content analysis, which complemented our understanding of the challenges and problems facing the theme. The results show that organizational decline can be organized into three different aspects: organizational decline itself; studies on turnaround; and mortality. Specific challenges to overcome are related to a better definition, cognitive issues and other issues on decision-making and specific methodological problems. In addition, it is necessary to evaluate whether theories that explain growth are also able to explain decline.

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Section: Challenges To Overcome When Conducting Research On Decline Amentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Organizational Decline Research Review: Challenges and Issues for a Future Research Agenda

Serra

Pinto

Guerrazzi

et al. 2017

BAR, Braz. Adm. Rev.

Self Cite

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show abstract

“…This gap in research remains unfilled (Serra, Ferreira, & Ribeiro de Almeida, 2013), as the majority of business and management studies are biased towards success and successful organizations, while business failure and decline is less examined. Extant research on decline, thus, is rather limited (Torres et al, 2011). In fact, although some scholars such as Barnard (1938) stated that firms' main measure of success is their ability to survive, most authors still take growth as the normal condition for an organization (Torres et al, 2011).…”

Section: Organizational Declinementioning

confidence: 99%

“…Extant research on decline, thus, is rather limited (Torres et al, 2011). In fact, although some scholars such as Barnard (1938) stated that firms' main measure of success is their ability to survive, most authors still take growth as the normal condition for an organization (Torres et al, 2011).…”

Section: Organizational Declinementioning

confidence: 99%

“…Organizational decline is a natural part of an organization's lifecycle, despite biases in literature and practice that unfettered, constant growth is the natural state of organizations (Bedeian, 1980;Penrose, 1959;Torres, Serra, Ferreira, & Menezes, 2011). However, what happens during decline is that insiders and outsiders tend to enact self-fulfilling prophecies about the organization that act to accelerate and assure organizational decline and death (Edwards, McKinley, & Moon, 2002).…”

Section: Introductionmentioning

confidence: 99%

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Identity Processes to Trigger Turnaround in Response to Organizational Decline

Rockwell¹

2016

IJBM

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This article proposes a model of identity-related social processes that, when applied during organizational decline, is hypothesized to support turnaround and avoid organizational death. The social processes are retiring, reclaiming, reaffirming, regenerating, and reimagining identity attributes. Although this model is rooted in past studies and literature on organizational decline and organizational identity, empirical research is needed to validate or adjust the model. Future work could involve examination of identity negotiations within past cases of organizational decline and turnaround as well as devising and testing specific retiring, reclaiming, reaffirming, regenerating, and reimagining interventions.

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The effect of resource slack on organizational decline of large Brazilian companies: the moderating effect of the industry’s dynamic

Pinto,

Serra,

Falaster

et al. 2024

MRJIAM

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Purpose This study aims to investigate the influence of resource slack on the decline of Brazilian companies, with a particular focus on the moderating role of environmental dynamism. The authors specifically examine three types of resource slack: available, potential and recoverable. These represent surplus resources that exceed what is necessary for the organization’s basic operations. The role of environmental dynamism, characterized by rapid changes in customer preferences, technologies and competitive dynamics, is considered as a moderating factor in this relationship. Design/methodology/approach The authors used data from Brazilian companies spanning from 1997 to 2008. The research sample was composed using the matching-pairs method, which included a group of publicly traded companies that experienced decline (43 companies) and a group that did not (40 companies) within the specified timeframe. Findings Findings of this study indicate that the presence of available slack, being more liquid resources, decreases the likelihood of organizational decline. Furthermore, the moderation effect of potential resource slack can mitigate decline in companies operating in dynamic industries. Originality/value This research provides valuable insights into the impact of slack resources on potential organizational turnarounds. Given the relative scarcity of resources in these companies compared to those in developed countries, whether they be financial, human or technological, the study highlights the unique influence of slack in a less explored institutional environment. This research underscores the importance of examining the decline of Brazilian companies from a broader perspective, emphasizing that decisions regarding resource use can have significant implications on a company’s trajectory, either amplifying or mitigating its decline.

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The decline of large Brazilian companies

Abstract: This article focuses on the organizational decline and, more specifically, the evolution of a selected group of Brazilian companies that were

Cited by 7 publications

References 60 publications

Organizational Decline Research Review: Challenges and Issues for a Future Research Agenda

Organizational Decline Research Review: Challenges and Issues for a Future Research Agenda

Identity Processes to Trigger Turnaround in Response to Organizational Decline

The effect of resource slack on organizational decline of large Brazilian companies: the moderating effect of the industry’s dynamic

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