Turnaround in small firms: An assessment of efficiency strategies

Abstract An analysis of the content and process of turnaround strategies in smaller manufacturing firms is presented. Successful short-term strategies for performance turnaround are identified through logistic regression, profile analysis, and univariate t-tests. Tactics such as improvements in employee productivity, reduction of fixed assets, and stretching accounts payable are associated with the likelihood of turnaround, and efficiency moves have precedence over entrepreneurial moves for short-term turnaround success. Improved employee productivity appears to be the most important predictor of turnaround.

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