An empirical investigation of corporate decline of the Jordanian manufacturing companies working in pharmaceutical and medical industry
by Abdulkareem Salameh Awwad
International Journal of Business Performance Management (IJBPM), Vol. 12, No. 3, 2011

Abstract: The purpose of this study is to empirically investigate the impact of internal and external causes of corporate decline on organisational performance in the Jordanian manufacturing companies working in pharmaceutical and medical industry. To achieve this objective, this study used a cross-sectional survey design to collect data from a sample consisted of 177 employees. Statistical techniques of factor analysis and regression were used to analyse the data. The results of data analysis indicated that the corporate decline is resulted from internal causes of corporate decline which are attributed to the factors related to operations function, management attributes, and financial function; and external causes of corporate decline which are attributed to the factors related to economics and customers. This study contributes to knowledge on the academic and practical levels of works on corporate decline in that it raises some implications for managers and consultants such as encouraging managers to determine the major causes(s) of corporate decline and check whether the decline resulting from internal or external factors or both, and motivating and empowering employees during the period of corporate decline to let them respond effectively to decline situations.

Online publication date: Tue, 21-Oct-2014

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