Corporate governance and financial constraints on strategic turnarounds

The paper extends the Robbins and Pearce (1992) two-stage turnaround response model to include governance factors. In addition to the retrenchment and recovery, the paper proposes the addition of a realignment stage, referring specifically to the re-alignment of expectations of principal and agent groups. The realignment stage imposes a threshold that must be crossed before the retrenchment and hence recovery stage can be entered. Crossing this threshold is problematic to the extent that the interests of governance-stakeholder groups diverge in a crisis situation. The severity of the crisis impacts on the bases of strategy contingent asset valuation leading to the fragmentation of stakeholder interests. In some cases the consequence may be that management are prevented from carrying out turnarounds by governance constraints. The paper uses a case study to illustrate these dynamics, and like the Robbins and Pearce study, it focuses on the textile industry. A longitudinal approach is used to show the impact of the removal of governance constraints. The empirical evidence suggests that such financial constraints become less serious to the extent that there is a functioning market for corporate control. Building on governance research and turnaround literature, the paper also outlines the general case necessary and sufficient conditions for successful turnarounds

The Effects of Cost and Asset Retrenchment on Firm Performance: The Overlooked Role of a Firm’s Competitive Environment

When firms face declining financial performance, research suggests that cost and asset retrenchment can lead to improved performance among poorly performing firms. However, previous studies have largely focused on firms operating in mature industries. This research develops and tests arguments that cost and/or asset retrenchment strategies will have different effects on firm performance in competitive environments characterized as growing and declining. In growth industries, asset retrenchment was positively related to performance improvement while cost retrenchment was unrelated. In declining industries, cost retrenchment was positively related to improved performance while asset retrenchment had a negative effect on firm performance. Implications of these findings for turnaround strategies are discussed.Yeshttps://us.sagepub.com/en-us/nam/manuscript-submission-guideline

Efficient high-level abstractions for web programming

International audienceWriting large Web applications is known to be difficult. One challenge comes from the fact that the application's logic is scattered into heterogeneous clients and servers, making it difficult to share code between both sides or to move code from one side to the other. Another challenge is performance: while Web applications rely on ever more code on the client-side, they may run on smart phones with limited hardware capabilities. These two challenges raise the following problem: how to benefit from high-level languages and libraries making code complexity easier to manage and abstracting over the clients and servers differences without trading this ease of engineering for performance? This article presents high-level abstractions defined as deep embedded DSLs in Scala that can generate efficient code leveraging the characteristics of both client and server environments. We compare performance on client-side against other candidate technologies and against hand written low-level JavaScript code. Though code written with our DSL has a high level of abstraction, our benchmark on a real world application reports that it runs as fast as hand tuned low-level JavaScript code