Performance Consequenses of Corporate Restructuring

Abstract

We suggest an integrative process view combining various performance drivers such as financial, strategic, and organizational initiatives in understanding restructuring performance. According to this view, retrenchment-oriented restructuring initiatives will improve only the short-term financial performance. For the long-term corporate performance, companies pursuing both business restructuring and organizational system changes in combination will benefit most. These hypotheses were tested with 60 publicly traded Korean companies in electronics industry.