| Summary: | Prior research on corporate turnaround relates to those organizations that have managed to move from poor performance to high performance within a relatively short time period by a case-study approach. The study also explores the role of leadership as a key factor in making turnaround successful as characterized by the change in CEO and in the board of directors. Finally, it explores the incentive systems of those firms during the turnaround.
This study analyzed six public companies which consist of 3 cases of turnaround and 3 cases of sustained good performance cases in the UK High-tech industry, over a period of 2000-2008. In the case study, I found the success of turnaround is primarily due to the rational utilization of appropriate turnaround strategies (i.e. new product development and/or acquisition) to reflect those external and/or internal changes that have a significant influent on corporate decline. Also it discovered that there is a positive relationship between the changes of the board members and firm performance during turnaround attempts. Finally, no any change has been appeared in the incentive system during the turnaround.
Key words: Strategy, Turnaround, Leadership, High-tech industry
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