• Management & Information Systems Review
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• v.34 no.1
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• pp.211-225
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• 2015

This paper investigate the impact of insolvency cause(internal insolvency cause, external insolvency cause) on firms' turnaround strategies(strategy of improving efficiency, strategy of creating revenue) and examines the impact of firms' turnaround strategies on firms' turnaround performance(debt ratio, sales growth ratio). For this study, a survey was conducted among administrative assistants and four hypotheses were verified. The findings of this research are summarized as follows: First, internal insolvency cause had a positive effect on strategy of Improving efficiency(expense reduction, asset reduction), but external insolvency cause had a positive effect on strategy of creating revenue(product/service reduction, product/service expansion). Second, strategy of improving efficiency positively effect on decreasing debt ratio, but strategy of creating revenue positively effect on the sales growth ratio. These results show that turnaround strategies different across the corporate insolvent cause, and turnaround performance also different across the corporate turnaround strategy.