TURNAROUND IN SMALL FIRMS - AN ASSESSMENT OF EFFICIENCY STRATEGIES

An analysis of the content and process of turnaround strategies in sma ller manufacturing firms is presented. Successful short-term strategie s for performance turnaround are identified through logistic regressio n, profile analysis, and univariate t-tests. Tactics such as improveme nts in employee productivity, reduction of fixed assets, and stretchin g accounts payable are associated with the likelihood of turnaround, a nd efficiency moves have precedence over entrepreneurial moves for sho rt-term turnaround success, Improved employee productivity appears to be the most important predictor of turnaround.