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Interim management utilisation, firm flexibility and its impact on firm performance

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  • Rodrigo Isidor
  • Christian Schwens
  • Ruediger Kabst

Abstract

The utilisation of interim management increases steadily. However, its impact on firms' flexibility and performance remains unclear. Drawing on the flexible firm model, we derive hypotheses for the influence of interim management utilisation on the firm's functional, numerical, and financial flexibility. We test the hypotheses on a dataset of 294 German firms. Our results show that interim management utilisation is positively related to the firm's numerical and financial flexibility but not to functional flexibility at all. Moreover, results illustrate that functional and financial flexibilities are significantly related to firm performance. Based on our theoretical analyses and empirical results, we consider interim management to provide a fertile ground for future research. Thus, we encourage future research to apply different theoretical lenses to shed light on the complex topic of interim management.

Suggested Citation

  • Rodrigo Isidor & Christian Schwens & Ruediger Kabst, 2014. "Interim management utilisation, firm flexibility and its impact on firm performance," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 14(4), pages 174-186.
    • Handle: RePEc:ids:ijhrdm:v:14:y:2014:i:4:p:174-186
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