Corporate Turnaround Strategies and Business Performance: The Effect of Size and Government Assistance on the Manufacturing Companies

The literature on Corporate Turnaround has grown tremendously over the past four decades. However there are still many questions remain unanswered in regards to the
concept of Corporate Turnaround. There are many conflicting results on the existing literature and many theoretical as well as empirical gaps, especially in respect to the
turnaround research in developing countries, were still left unexplored. The objective of the thesis is to shed some light in the aspect of content and context of turnaround research. This thesis examined seven Strategy-related Factors and two Non-strategy Contextual Factors in light of their influence towards Business Performance in the
context of Corporate Turnaround. The data was collected from 124 private manufacturing companies in North Sumatera, Indonesia. This research found that Debt Restructuring, Changes in Market Entry and Operating-Asset Reduction Strategy were three among seven Strategy-related Factors that contribute significantly towards Business Performance of Turnaround Companies. The study also found that Company Size and Government Assistance do moderate the relationship between Strategy-related Factors and Business Performance.