Turnaround in East Asian firms: Evidence from ethnic Overseas Chinese communities

Research done primarily in the United States has shown that firms in decline enjoy better odds of returning to health when strong measures are taken. The culture of the Overseas Chinese of East Asia has helped to shape the region's prior commercial success but it also impacts responses to firm decline and turnaround. This research provides the first empirical investigation of the turnaround strategies of Overseas Chinese firms in East Asia. The evidence gathered shows that the utility of the predominantly U.S. model of firm turnaround has limits in East Asia. In particular, the role of strong owner-managers and the importance of relationships among business people constrain the applicability of prior U.S. research to East Asia. Copyright (C) 2003 John Wiley Sons, Ltd.