Factors Determining Turnaround Strategies for Declining, Large, High-tech organizations

This study aims to identify the factors that should determine turnaround strategies for declining, large, high-technology companies. Goswami (2022) indicates that many high-tech organizations have been declining recently due to an external crisis triggered by inflation and high interest rates, with many implementing turnaround strategies. This study offers an evidence-based approach to identify the factors that should be considered when selecting a turnaround strategy at declining, large, high-technology companies. An evidence-based approach was used since Pfeffer and Sutton (2006) suggested that using data to drive decisions improved management decisions. The qualitative Rapid Evidence Assessment (REA) methodology suggested by Barends et al. (2017) was used to find 14 articles (quantitative, qualitative), critically appraise, and code to synthesize the evidence and provide findings and recommendations for the turnaround of high-technology companies. The main findings of this research are that a) the selection of the turnaround strategy should differ based on whether the crisis is externally or internally triggered and should consider stakeholder management, in addition to strategic and operational factors b) An external crisis requires managerial cognition of the crisis, flexibility to adapt to the current market, aligning of the strategy of the organization with the environment and pursuing new sales markets which have not been impacted by the external crisis, focus on innovation, increased R&D spending, and increased sales/marketing. c) An internal crisis requires managerial cognition of the crisis, along with employee incentives, customer focus, communication with all stakeholders, retrenchment, restructuring, new product introduction, quality, process focus, decentralizing decision-making, and engaging in external relationships such as acquisitions/mergers/joint ventures.