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Hitting The ‘Reset Button’: The Role Of Digital Reorientation In Successful Turnarounds, Michael A. Abebe, Chanchai Tangpong, Hermann Ndofor

Management Faculty Publications and Presentations

Seismic shifts in industries brought about by radical technological innovations usually lead to a misalignment between the capabilities of many incumbent firms and the requisites of their new environment, and eventually, organizational decline. The current turnaround literature, while emphasizing operating and strategic responses to organizational decline that focus on efficiency and fine tuning product/market strategy respectively, ignores such organizational decline that requires fundamental reengineering of the whole firm and its value chain. This paper introduces the concept of digital reorientation as a long term turnaround strategy to respond to situations in which a firm’s environment has been fundamentally restructured. Digital …