The role of top management teams in formulating and implementing turnaround strategies: a review and research agenda

Both business commentators and scholarly researchers have acknowledged the key role that top management teams (TMTs) play in reversing the fortunes of failing firms. Nonetheless, relatively few empirical studies have investigated the importance of TMTs in turnaround situations. To encourage such studies, we draw upon the multiple theories employed in TMT research as a guide to review studies that have examined how TMTs formulate and implement turnaround strategies. Based on this review, we highlight TMT topics that have received limited attention in the turnaround literature and, thus, represent opportunities for future research. We conclude by discussing methodological issues that should be considered when examining a TMT’s role in a turnaround situation.