The poor man's guide to paradox : managing dualities in corporate turnarounds

Schmitt, Achim (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland)

Since organizational scholars argue that re source scarcity accentuates dualities’ oppositional and relational nature, we need to know more about whether and how resource - scarce firms can manage paradox . Based on a longitudinal study of 107 Central European turnaround initiatives, we find empirical evidence that even resource - scarce organizations can successfully manage dualities. However, t hese organizations’ approaches to paradox resolution differ markedly from those previously described for organizations with abundant resources. Successful turnaround companies manage the duality between retrenchment and recovery by maintaining a biased balance within each stage of the turnaround process: while they combine the two activities, they concentrate on the most salient issue s by focus ing more on one activity than the other. Furthermore, they pursue a shifting balance throughout the turnaround process: while the retrenchment - recovery balance is biased towards retrenchment in the initial stage, the bias shifts towards recovery in the advanced stage. S carce resources are thus ta rgeted at addressing the most urgent needs at different points in time. Based on these findings, we c ontribute to the organizational paradox literature by developing a process perspective for managing dualities that integrat es the synergistic combination a nd temporal separation s trategies to addressing paradoxical tensions.


Keywords:
Conference Type:
full paper
Faculty:
Economie et Services
School:
EHL
Subject(s):
Economie/gestion
Publisher:
Vancouver, Canada, 7-11 August 2015
Date:
Vancouver, Canada
7-11 August 2015
2015
Pagination:
40 p.
Published in
Proceedings of the Academy of Management Annual Meeting 2015
Appears in Collection:



 Record created 2015-10-29, last modified 2018-12-20

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