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Organizational decline: a yet largely neglected topic in organizational studies
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Advisor(s)
Abstract(s)
Purpose – In this article, the authors aim to review the extant literature and analyze the theoretical influence in the academic research of organizational decline and related topics (turnaround and bankruptcy, for example). They examine the theoretical contribution and the most influential authors to better understand the intellectual structure that connects theories and authors that have researched organizational decline. This study makes it possible not only to understand the current state of the art of research on organizational decline but also to uncover and guide future studies on organizational decline, based on the conceptual gaps identified. Design/methodology/approach – Empirically, the authors conduct a bibliometric study involving analyses of citations and co-citations to uncover the connections between authors and theories used. The bibliometric study was performed in 18 top-ranked management journals. Their sample of 104 articles was retrieved from ISI Web of Knowledge. Findings – The authors identified four clusters of research areas, and conclude that evolutionary theories support a considerable number of works, including studies on the effects of inertia, isomorphism and adaptation. Sociological approaches have also been used, namely examining the adjustment of the internal structures and actions to enhance positioning. Other research on decline is based on works on learning and decision making as well as on decline and turnaround strategies. Research limitations/implications – The main limitations concern the methods and the sample. Although the authors selected 18 top management journals, they do not encapsulate the entire stock of existing knowledge. Originality/value – Well known and reputable corporations, not only the small entrepreneurial firms, also face organizational decline and failure. Although organizational decline is a reality, there is a notable scarcity of research on the topic. Organizational decline is more often studied in small companies and attributed to the liability of newness and a lack of several types of physical, technological, financial and social resources. Although the authors expected a priori to identify works using a resource-based view, that was not the case, perhaps because since the 1990s strategy scholars’ interest in studying organizational decline diminished. Notwithstanding, organizational ecologists continue to work on organizational decline as it is one of the central areas of their work.
Description
Keywords
Bibliometric study Organizational decline Turnarounds Organizational failure Organizational change Organizational performance
Pedagogical Context
Citation
Serra, F. R., Ferreira, M. P. & Almeida, M. I. R. (2013). Organizational decline: a yet largely neglected topic in organizational studies. Management Research, 11(2), 133-156. https://doi.org/10.1108/MRJIAM-Mar-2012-0476
Publisher
Emerald