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Turning Around a State Owned Enterprise: The Case of Scooters India Limited

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  • Sunil Kumar Maheshwari
  • David Ahlstrom

Abstract

Past research on firm turnaround shows that the propensity of an organization to undertake a successful turnaround depends on a complex interaction between action choices in the organization and constraints in the business environment. This article extends this line of research by examining corporate decline and turnaround in an environment with numerous challenging environmental constraints: the state-owned sector in India. Using an in-depth case study of a state-owned enterprise in India, this research found that the business environment, the firm's decision-making process, its leadership characteristics, and the stakeholders' responses were are all found to influence the firm's action choices and turnaround process. This study also shows that in addition to the strategic and operational changes so commonly associated with firm turnaround, the importance of leadership and the basic credibility of the firm's top management with major stakeholders and government officials also play key roles in the turnaround.

Suggested Citation

  • Sunil Kumar Maheshwari & David Ahlstrom, 2004. "Turning Around a State Owned Enterprise: The Case of Scooters India Limited," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 75-101, March.
    • Handle: RePEc:kap:asiapa:v:21:y:2004:i:1_2:p:75-101
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    Cited by:

    1. Fang Cooke & Debi Saini, 2015. "From legalism to strategic HRM in India? Grievance management in transition," Asia Pacific Journal of Management, Springer, vol. 32(3), pages 619-643, September.
    2. Michael Carney, 2015. "Capacity building at the Asia Pacific Journal of Management," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 827-833, December.
    3. Sanjay Jain & Anil Nair & David Ahlstrom, 2015. "Introduction to the Special Issue: Towards a theoretical understanding of innovation and entrepreneurship in India," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 835-841, December.
    4. Paul McGuinness & Kevin Lam & João Vieito, 2015. "Gender and other major board characteristics in China: Explaining corporate dividend policy and governance," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 989-1038, December.
    5. Mike Peng & Jessie Zhou, 2005. "How Network Strategies and Institutional Transitions Evolve in Asia," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 321-336, December.
    6. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.

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