Dynamics of reversal strategic change in emerging market: case study in India

Dynamics of reversal of strategic change (DRSC) in emerging market: Multiple case study in Indian firms

 (Preliminary draft: 1^st version)

 

Abstract (2400words)

This research aims to provide additional knowledge and understanding for employees’ acceptance and rejection of management efforts for reversal strategic change. Additionally, this study explores the survival strategies and how the managers cope with reversal change successfully. The study explores the reversal strategy as a substitute strategy to survive business in uncertain and crises (such as most recent Covid-19 pandemic). In this regard, reversal strategy is a technique that is initially introduced in growing nations aiming to be launched later in already developed markets and, it can be profitable method to trade the markets. Nevertheless, just like other trading techniques, there is a right and a wrong way to implement it. For quite some time now, the Reversal strategy has attracted a lot of attention since most organizations are using to serve the clients and can create more profits. Effective reversal distribution causes an essential return on investment, and it can increase market competition. Thus, this research analyzes the obstacles that prevent the effective implementation of Reversal strategy technique. Moreover, there has been a significant rise in multinational enterprises (MNEs) in emerging markets (EMs) and most people have focused on what leads to the internationalization of these firms. Therefore, the study aims to critically analyze the ups and downs of enterprises in India.

Keywords: strategic practices, reversal strategy, emerging market, India, management perspective, challenges

 

Index list (draft version)

Chapters

1. Introduction
   • Background of the study
   • Research questions and objectives of the study
   • Scope and signification of the study
   • Key concept of the study
   • Outline of the dissertation
   • Summery
2. Theoretical development
   • …………….
   • ……………………………………………………….
   • …………………………………………………….
3. Research design
   • Research approach
   • Research philosophy
   • Rigor in case study
   • Research process
     • Case selection
     • Case description
     • Data collection
     • Site visits
     • Analysis and coding
   • Study evaluation
   • Summery
4. Empirical study
   • Interpretation of finding
   • Summery
5. ………………………………………………
6. …………………………………………….

 

 

 

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• Background

According to UNCTAD (2019), top 20 counties with highest Foreign Direct Investment (FDI) inflow of some of the developed markets include the USA, the Netherland, the UK, Australia, Spain, Canada, France, Germany, Italy, and Israel developing markets includes China, Hongkong, Singapore, Brazil, India, Mexico, Indonesia, Vietnam, Korea Republic and the Russian Federation respectively and these developing economies are in the transition state into developed markets. The following sections provide insight over the emerging and developed multinational enterprises and an overview of the strategies employed in those firms. Local and multinational businesses have a significant role in shaping the international economy. For instance, the United States is the largest economy in the world, yet multinational enterprises have not been contributing to the growth economy equally. Multinational businesses only represent a small percentage of 1% in the U.S. through the highest rate of the gross domestic product, and imports had 24% in 2016 (Von Janada, Schuhmacher & Kuester, 2018). In most countries, multinational businesses are engaged in more than half of the host country’s imports. Currently, local and multinational companies dominate the world’s economy. Dabic, Gonzalez-Loureiro & Furrer (2014) stated that multinational firms describe for half of the international exports and these businesses contribute a significant share of their profits in a foreign country.

There has been a heated debate on the role played by multinational and local businesses to develop their economy. Therefore, one of the primary arguments is that multinational companies are helping local and emerging business to modernize the economy through the transfer of technology, experience (Rugraff & Hansen, 2011) and competence through the provision of export market access. Emerging firms economically tends to compete on price (Cuervo-Cazurra et al., 2018). Therefore, MNEs are achieving this by increasing either competition or production of quality and cheaper goods being produced by the local businesses (Immelt, Govindarajan & Trimble, 2012). However, there are no beneficial impacts provided, and multinational enterprises can suppress financial growth when they are involved in low dealings business in the host nation. Moreover, there have been stiff competitions between local and multinational businesses, which are helping to develop a consumption model that does not suit the host nation (Zhou, 2016). The impact of foreign direct investment (FDI) on host economies is complex as foreign investors interact with, and thus influence, many local individual, firms and institutions (Meyer, 2015). Therefore, MNEs are helping to improve FDI in the host country and even though there has been a reduction in the financial crisis that also reduces foreign direct investment. In addition, this trend has continued to increase in developing nations, which relates to the total FDI and thus, increased FDI streamline the cost structures.

Currently, both local and multinational corporations increase their productivity in areas where they present through knowledge transfer, industrial structure, or moving employees. Nevertheless, the significant differences vary from one nation to another which depends on the hosting government. Dabic et al., (2014) used the term ‘’absorptive capacity’’, which means that the local industry can absorb the overflow of multinational companies. Moreover, in the local industries, the scope of the business affects different areas of the industrial approach. Currently, local companies are emphasizing the strengths of the local market to connect with the community. Often, they are using specialization of the products and individualized strategies to keep and bring in clients.

On the other hand, Silveira et al. (2017) asserted that MNEs are powerful when it comes to product distribution, effectiveness and mass promotion. Multinational corporations are supposed to decide whether to utilize an entire corporal and promotion strategy to modify offerings to every nation. When it comes to the management of people, the one dynamic in multinational corporations is difficult as compared to local firms. Albert (2016) stated that there is always a tiny employee base that makes it simple to develop a specific working culture and an intimate place of work. Multinational corporations must be able to implement the human resource system in different nations and cultures, whereas upholding a united corporal environment. Therefore, in the current increasing business dynamics and complicated industrial environment, it is essential to know whether planning tools should be trusted or abandon since they are meant for steady environments. Steady environments include the competitors whereby multinational and local firms are carrying out the ‘‘competitor intelligence’’. According to Porter (2015), competitor intelligence is a procedure whereby corporations collect critical data about the competitor and, the collected data is then compiled. In this process many questions are usually being asked such as ‘‘who are they,’’ ‘‘what are they doing’’ and ‘‘how they will affect us?’’.

India is considered one of the most developing economies in the globe (Johnny Wood, 2018; weforum.org, Silveira et al., 2017); MNEs have been increasing over time because of the broad market in other countries around the world. Also, there are regulations in the country that have contributed to the increase of MNEs in the country. For the past few years, the country had strict rules concerning about foreign direct investment. Due to this, only a few companies were excited about investing in India. Nevertheless, there was a change in the situation during the economic liberalization of the nation, more so in 1991. Currently, Tang, Tang & Su (2019) stated that the government is trying as much as possible to bring in foreign investors through calming most of the regulations. Due to this, several MNEs are now interested in the country’s market. Nam, Nam & Steinhoff (2017) stated that India’s Prime Minister, Mr. Narendra Modi initiated a campaign called ‘’make in India’’, which acts as the opportunity to every MNEs across the globe to start a business in the country. The country is advantaged because of the active private industries which cover many areas. The country has many professionals who are English literate along with traditional, financial and technological links with the western developed countries that favor MNEs. Indians are known to be flexible to work with global people and they adjust to different traditions, and they have good records in business competitions.

Despite these uncertain economic times, globalization continues (Ionescu & Dumitru, 2012) to the opening of many markets and thus increased competition not only in emerging market but also in developed countries (Meyer, 2015; p. 5). According to Rottig (2016), globalization has been the center of development in the production and lifestyle of the Nordics and, it has caused many opportunities than threats. Conversely, Nordics are under pressure because of growing technology. In Asia and Latin America, there has been an emergence of financial giants which forces other economies to re-plan the economy at the higher rate. Innovations and the increment in new activities are compensating relocation of production and unemployment. The Nordics have been accepting globalization as well as the welfare state which offers security through a common share of links which enhances the right globalization attitude (Tang, Tang & Su, 2019). Amongst all Nordic nations, Govindarajan & Ramamurti (2011) said that only 33% of the entire financial depended on the client in international markets whereby there was no effect on shares for the past 20 years. Nordic MNEs that largely depend on importing primary metals in Finland, Iceland and Norway. There were only 29% of the total exports in Sweden that showed international content. However, there are higher shares in information technology and 35% of the electrics and other export organizations, for instance, 47% and 46% of the primary metals and vehicles, respectively (Matysiak, Rugman & Bausch, 2018). In these industries, firms utilize an international value chain to buy products and resources which are expertly manufactured in another place. Hadengue et al., (2017) stated that although one sector can have a little share of the domestic values in exports, a business can produce a higher amount of internal value added which develops the economy. MNEs have various benefits affecting the emerging market, such as improving productivity (Williamson, 2014), improving payment, increasing exports, improving foreign money reserve, reducing imports and joblessness, improving financial stand and as well as accessing modern technology for improving efficiencies (Tuominen, 2016). In some circumstances, there can be direct benefits between MNEs and emerging markets, although such benefits might have advantages and disadvantages. As a result, this study will assess Asian and Nordic MNEs.

 

Problem statement

According to Tang et al. (2019), the potential possessed by the emerging markets is slowly exceeding that of developed countries. Change of eras has developed a business environment that allows new clients from different countries and then evolving them into a massive consuming center for MNEs. Consequently, such developments are considered as opportunities for capitalization and to move the company operations to this market that was regarded as low production hubs. Different markets such as Brazil, China and India are taking these opportunities for the increased demand for products. There has been an increase in presence in MNEs in the international market (Tang, Tang & Su, 2019). Because of the increase in offering products and services in the global markets, organizations must adopt to the diverse traditions, target environment and interior powers. Currently, the modern market is developed, and it is not a surprise that new multinational enterprises are aiming at the upcoming markets for several industrial opportunities. Because of the dynamism in the market, MNEs should select updated entry techniques. Even though there is the presence of MNEs in the international market and adequately familiar with the changes, it is not simple to enter into some nations. Therefore, the research will be concerned about evaluating the Reversal strategy techniques by Indian and Nordic firms.

 

Rational and justification

The research aims to compare Nordic and Indian firms and analyze their similarities and differences. Besides, the research aims to evaluate reversal dynamics of Indian and Nordic firms in an emerging market. In countries that have poor technology, MNEs play an essential role for economic development. However, some researchers oppose that Indian and Nordic have experienced economic growth because of MNEs and thus, the researcher will also investigate the impacts of MNEs to the economy of India and Nordic firms.

Scope and significant of the study

Since 1990s, many of the emerging markets have started to invest in strategies that guide in transforming their economies into developed markets (Pillania, 2009) and contributed to international expansion. Further, these emerging MNEs adopt policies and motivation from the developed markets. However, reverse policies are also being incorporated in both the emerging and western MNEs to compete in the international business sector. Because the phenomenon of Reversal strategy dynamic in an emerging market has been previously unexplored, therefore, the present research study will provide significant insight into the Reversal strategy dynamics adopted in emerging Asian MNEs and the western MNEs. Mainly, this study will take a case study research method in which data collected through direct observation of the cases give an in-depth knowledge of the MNEs, providing a significant contribution to the strategic management literature in the context of reversal dynamics adopted in the emerging markets and western MNEs.

Qualitative research questions and objectives

The study will outline the objectives by stating how reversal of strategic change can benefit to the policymakers.

Research questions

(1) How do the managers successfully revise the planned change?

(2) How do the employees react over the managerial efforts to adopt the prior strategy?

Objectives

• To explore how the managers and employees negotiate to employ the reversal strategy successfully in an organization.
• To examine the factors that affect firms in implementing reversal strategy dynamics.
• To provide the understanding on how organizations do to ensure a successful reversal strategy.

The questions are set to frame to unravel the meaning and concept behind the reversal strategy and identify the factors that influence the implementation of reversal of strategic dynamics (RSC) as examined in the secondary literature and develop RSC conceptual pattern from the context of strategic management.

 

Research methodology and data

4.1 Research Approach

Research provides the significant grounds to develop knowledge (Lancaster,2005) and theories. In business research, researchers interpret their subjects through the lens of social world in which they live, situating them in the context of social science (Khan, 2022; Bell et al., 2018; Bryman & Bell, 2007). This research study is based on an inductive research approach. This type of research approach involves identifying patterns in data and then developing theories to explain those patterns (Bernard, 2011). In addition, Armat et al. (2018) indicated that an inductive investigation begins with no preconceived notions or assumptions, and the researcher is free to modify the course of the investigation at any time once it has begun. However, this approach does not imply ignoring hypotheses while establishing research objectives and questions. The inductive method does not prohibit the researcher from utilizing existing theories to create the research question and draw conclusions, and according to Saunders (2014), this strategy aims to develop interpretations from the data set in order to uncover links and patterns. As a result, the inductive research method is the most appropriate for this investigation since the study relies heavily on collecting information as part of the research process, with the goal of having a conclusion based on the in-depth examination of the research topic. Therefore, because of the study’s importance of assessing the challenges around success or failure of reversal of strategic change and exploring whether reversals are applicable when the firm is in crisis using the multiple case study in India, this research approach is best adopted.

 

• Research Philosophy

Researchers should understand the philosophy of their research and that includes ontological, epistemological and methodological consideration of each study that they have performed during their scientific research (Figure 1). Ontology reflects on the constitution of reality where the researcher is responsible for differentiating between how things really are and how things really work (Scotland, 2012). In the context of business research ontology reflects on the social aspects of entities through the lenses of objectivism and subjectivism (Brymen & Bell, 2007; Saunders et al., 2009). Objectivism refers to entities that have realities external to social actors, whereas subjectivism refers to the view that social reality is formed by the perceptions and actions of social actors (Eriksson & Kovalainen, 2008; Saunders et al., 2009). However, this current research uses a pragmatic lens for its ontological positioning (Khan, 2022).

In pragmatism, the researcher has the freedom to position themselves from any viewpoint either objectivism or subjectivism, they choose their perspective based on suitability of their research questions (Saunders et al., 2009). Researchers who follow this approach tend to focus on the practical outcomes of their research and the context of their research questions and research problems, rather than philosophical positionings (Saunders et al., 2009). Pragmatists believe that there is no single research reality, as they can be multiple ways to conduct research and interpret reality (Saunders et al., 2009). Moreover, pragmatists focus on contextual interpretations of research and agree that there are many different approaches and methods that can be used to assess any research problem (Creswell, 2009).

Next epistemology concerns the nature and forms of knowledge and addresses how knowledge can be shaped, attain and transferred (Scotland, 2012). Epistemology refers to the ground of knowledge, which involves building on and understanding of the world and then communicating it to others in the form of knowledge (Burrell & Morgan, 2005). The debate of epistemology is viewed along the axes of positivism and interpretivism (Bryman & Bell, 2007; Saunders et al., 2009). In positivism, knowledge is assured through senses, as featured primarily in the field of social science (Bryman & Bell, 2007). According to Saunders et al., (2009), researchers are reflecting to the philosophy of positivism tend to adopt the role of natural scientists.

In contrast, interpretivism does not interpret the social world from outside; rather than, it utilizes individual experiences to seek reality from the inside (Burrell & Morgan, 2005; Saunders et al., 2009). Interpretivists believe that there are fundamental differences between the social science and the natural sciences that prevent the methodological application of one field to the other (Bryman & Bell, 2007). They do not consider human beings to be solely a physical phenomenon; rather, they see them as the actors who create meaning (Khan, 2022). Interpretivists assess, understand, communicate, and transfer these meanings in the form of knowledge to recognize organizational realities (Saunders et al., 2009).

According to Fassinger and Morrow (2013), research philosophy emphasizes how the investigator constructs the questions to be used in the research, how the topic might be addressed, the study design chosen, the data collection techniques, and the analysis and interpretation approach used. This particular research study utilizes the interpretivism research philosophy. Interpretivism research philosophy focuses on understanding human behavior or a phenomenon; one must seek empathetic awareness, in other words, see the world from the perspective of the people doing the acting (Antwi & Hamza, 2015). The said research philosophy is in line with qualitative research design and advocates for more meaningful contact and interaction between respondents. With this particular study being a review (qualitative research design), the interpretivism research philosophy is the most appropriate for utilizing individuals’ experiences to capture and inside perspective. According to Alvesson and Karreman (2011), interpretive philosophy explains that because everyone has a unique reality experience, they individually view, interpret, and experience a situation or phenomena of self-interest. The epistemological principle of this philosophy is that knowledge is gained by personal experience, and this experience is portrayed in great detail and depth (Gephart and Saylors, 2020). It is, therefore, most effective to gain a better understanding of phenomena and classify them by utilizing an interpretative research methodology by including researchers in the context and not quantifying data (Tolley et al., 2016). Thus, the researcher will assess the challenges around the success or failure of reversal of strategic change in emerging market with context India.

Objectivism                                              Subjectivism

Ontology

Pragmatism

Positivism                                            Interpretivism

Epistemology

 

Qualitative                                          Quantitative

Methodology

 

Approach to theory                  Deductive                                      Inductive

development

 

 

Fig. 1. Ontological, epistemological, and methodological positioning and approach of the dissertation

 

• Rigor in Case Study

Lincoln and Guba (1985) established four criteria for measuring the rigor of case study research: transferability, confirmability, dependability, and credibility. In particular, the research must ensure that there is worthiness and plausibility of the results, which means that they are credible and should include two processes: conducting real research and demonstrating credibility. In addition, the credibility of the data of this qualitative case study research was guaranteed by ensuring that the data was reliable and dependable. According to Cypress (2017), the term dependability is frequently used interchangeably with the term reliability’ and relates to the data’s credibility. On the other hand, this case study research is based on confirmability, which according to Houghton et al. (2013), is a term that relates to the data’s neutrality and correctness. However, this term is closely related to dependability since the techniques for establishing both are identical. Nonetheless, the case study should be transferable, which as per Levitt (2021), is a term that relates to the ability of certain results to be applied to another similar setting or circumstance while retaining the study’s implications and inferences. A total of 3 firms in India are considered as the research’s case study locations. A combination of email, in depth-interviews with employees, and telephonic rounds with senior managers and CEOs have used to gather the data. The analysis conducted in accordance with Morse’s (1994) four-step framework: understanding, synthesis, theorizing, and re-contextualization. The study’s findings are to examine the difficulties associated with the success or failure of reversal of strategic change and determine if reversal strategy may be adopted when a corporation is in crisis. In addition, the rigorous case study was ensured recommendations were made to maximize the strategies used in the case study research and potential strategies that should be considered when a corporation is in crisis.

• Research Process
  • Case selection

Case selection is a critical component of scholarly investigation since it heavily influences the amount to which the results may be generalized to a wider target population (De Massis & Kotlar, 2014). According to Etikan, Musa, and Alkassim (2016), case selection, also referred to as sampling, is more usually used when a large number of examples are chosen. While chosen the case company, the researcher created a snowball in order to selecting case company by email sent to the firms and organization. There were three firms who replied back and allowed to provide data from their firms in India. The study used a multiple case study in India. The presented study employed purposeful using sampling strategy, the researcher selected respondents who were willing and capable of providing information for this research based on their knowledge and experiences. The sample included all employee groups of the involved firms in this case study, including ordinary staff, senior managers, and CEOs. The investigators determined the sample size as it is unknown how many individuals work in the various firms.

• Case description

The researcher adopted a case study research design. According to George (2019), case studies provide how and why questions of the study that focused on current occurrences, and the researcher was not required to watch conduct occurrences. On the other hand, Saunders et al. (2019) indicated that case studies focus on current occurrences and do not need the researcher to keep an eye on what they are doing. In addition, Harrison et al. (2017) indicated that the case study provides a number of data collecting methods that may be used to gain thorough information on each research subject through interviews and observations. As a result, the questionnaire was designed for the most suited for the current study. As an added benefit, because case study relies on first-person experiences of one particular thing, Runfola et al. (2017) noted that this type of study gives the kind of accurate information needed for any particular investigation, and one can get insight into input processes by making observations. Consequently, it is much easier to conduct case studies since researchers are able to access real-time information. Hyett et al. (2014) claim that the use of case studies to gain descriptive information about a specific phenomenon is on the rise in qualitative research methods. Therefore, because of the adoption of qualitative research methods, there is the acquisition of a large amount of fast-hand data about a phenomenon which is facilitated by the use of case studies. As a result, employing a case study method and a variety of tactics, including interviews with employees and senior corporate officials, will be effective in gathering qualitative data, and this would help the examination of the challenges concerning success or failure of reversals in firms’ uncertain time.

 

Table 1.:  Data source of study

 

Source Action

Primary                     24 face-to-face interviews (18 employees, 3 (CEOs and managers)

Primary                     Observations and field notes (site visits in companies)

Secondary                Company website (latest news and websites)

Reflective                 Discussion about results in meetings at case companies

Reflective                 Report and results given to company service manager and    feedback discussion

• Data collection

This study formed the use of primary research data collection methods. In particular, interviews were used to collect the qualitative data, where the participants were given a chance to provide their own opinions in the open responses. A wide range of survey questions included in these interviews, allowing participants to give more individualized reactions to the issues under investigation. Qualitative interviews provide a form of social inquiry that produces social knowledge. Biddle et al. (2013) argue that qualitative interviewing could be therapeutic for particularly vulnerable populations who lack a ready platform to voice their views, and prisoners are one such population. With this in mind, employing qualitative interviewing for this research study seemed highly appropriate, with additional benefits to the employees and senior managers. Due to covid-19 pandemic restrictions, the primary interviews were conducted online via zoom in order to meet the social distance recommendations. Each interview allocated 30 to 45 minutes. The second round of the interview sessions between 22 April-2^nd May 2022, with 3 senior managers and 3 CEOs and 18 employees was recorded (audio-visual recording) and afterward transcribed to extract relevant information for interpretations and analysis purposes. Additionally, open-ended questionnaires were distributed to employees via emails. The said distribution via email was critical in reaching the majority of people in a short period of time and collecting meaningful data from a particular set of participants (Regmi et al., 2016). Therefore, through the use of these data collection methods, it was possible to examine the challenges concerning the success or failure of reversal of strategic change and explore whether reversal strategy can be applied when a firm is in crisis.

However, questions about the participants’ demographic information were also examined in the three data collection tools. That included their age, gender, experience, and education level. The interview questions included the following: ‘‘Did you ever pressurized to work on merged strategy? Did you ever realized that reversals are meant for sustain the business in market? Each participant had the independency to discuss or open their views over additional questions.

All the respondents were between 35-48 years old and educational level from Metric to master level. And most of them had 3-8 years’ work experience. CEOs age were between 38-50 years.

 Table 2. Number of case firm and information

 

Name of the firms	Year of establishment	male  /female Number of interviewees			Business opseration	Informant Role(s)
Firm A	2008	8	7	1	Textile (trader)	1 manager, 1 CEO and 6 Employees
Firm B	2010	8	5	3	Auto spare parts (trader)	1 manager, 1 CEO and 6 Employees
Firm C	1992	8	8	0	Stainless Steel Parts (manufecturer)	1 manager, 1 CEO and 6 Employees

 

 

 

• Site visit

           Observation played a fundamental role as I was able to develop the understanding for day-to day communications between the managers and employees and between the managers and CEO of the firm. It was good experience to know how the employees of the firms are engage with practices and activities. I got the chance to had lunch with the managers and employees which was good reason to talk with everybody unfolding the communication gap (since at working, managers and employees have totally different way of talking). I found different keys issues between our communication for e.g. how employees react when they do not agree with their leader’s idea and how practically, they feel when they are not allow to go against although they could.  I had 2 visits in each firm, but all visits were with manager. Each visit was recorded on notepad (Mantere et al., 2012; Bernard, 2002). Even two visits were too hard to organize since pandemic situation took over India and started lockdown (April 2021). And rest data was collected through the interview, meetings and emails (since I had to collect more information from the interviewers, and they were unable to meet due to Covid-19). However, I was able to collect all the required information that I needed to answer of my research questions. And all the respondents were very kind to provide the information and able to open up and discuss with me about pros and cons for accepting/making changes in planned strategy.

Analysis and Coding

Analysis of data received from participants was conducted in order to answer study questions and research objectives. Methods of data analysis recommended by Berkowitz (2013) were used to complete these processes, which included data coding and outlines that were tested and propositions that were developed. Therefore, the key themes resulting from thematic analysis using Nvivo software identified from the answers provided by the participants. According to Vermez (2016), qualitative studies make use of thematic analysis in identifying, analyzing, and presenting themes. Therefore, the thematic analysis identifies similarities that lead to the identification of the most significant themes within the information.

     Ethical issues

Before collecting al data and sites visits, I assign the contract to protect the confidentiality and privacy of each firm and interviewee discussion. All interviews were made aware of the concept of the research and its theory to use. All of the firms gave its permission to do research in their premises. I made all interviewees familiar with the reversal strategic process and they listened my research questions carefully and answered as possible as its best way. If any of the interviewees didn’t want to answer of any question (may be due to their policies which can’t be disclosed) were not pressurized to disclosed.

I was very much conscious and sensible about the any issues that may hurt them emotionally or may affect their current career. I remember some participants didn’t want to answer about any financial loses or benefits. I did not put any participant in any discomfort situation. I disclose with them that if they feel the questions with out of their understanding of out of their rule, they may skip to answer. Though, this was not scenario that this kind of question may occur, yet it was appropriate and ethically right to prepare them such event in advance.

A consent form and information regarded questions and concept was handed over to the managers at each firm, that follows; acknowledgement of the subject and thesis title, brief summary of the case study and their research objectives that I mentioned in methodology chapters.

This research is 100% honest about the purpose of the investigation. Keeping in mind the norms and values, investigation from all three firms in India was not disclose with each other firms. Along that, I promised with them that I will not their name in the case study of my dissertation.

I was very comfortable with all the interviewees, and they made me sure that they are also comfortable to discuss. They answered my all questions which made me happy to include the theory in my dissertation. I got all the information that I required to answer the research question and objectives.

 

2. Finding

The finding of this dissertation underscores the affects and effects of employing reversal change and management action. We present the finding according to two change aspects that emerged as most important in this research data analysis i.e., factors of reversal strategic change success and failures and respective employees’ responses towards reversal strategic change.

Subsequently, the researcher combined the codes to generate two themes; factors for successful and failures of reversal strategic change, which have been discussed below.

1. Reversal strategic change successful

            Implementing the reversal strategy

The three companies expressed different approaches to ensure the successful implementation of the planned change. One of the approaches shared by all the three companies were with effective communication. The managers noted that giving the company employees timely and adequate information on why there is need for strategic change in essential to convince them to support it. This finding demonstrates the importance of communication in effecting reversal strategy, especially when some staff members doubt the logic of reverting to a prior strategy. Concurrently, the managers also emphasized the importance of teamwork. One of the respondents observed that they faced numerous challenges during the Covid-19 pandemic. Teamwork played a significant role in keeping the staff together behind one strategy that the top management team proposed. Another respondent reported that involving employees in key decisions, such as when implementing a reversal strategy, helps to earn their commitment. Indeed, respondents from two companies explained that effective communication and teamwork motivate employees to take responsibility for the quality of work after implementing a change of strategy.

However, the respondents also reported the need for decisive leadership by management as some employees might not agree to the changes. A respondent from one of the companies observed that employees may not always agree with the manager’s ideas. According to one of the CEOs of the companies, a manager should not change their mind regarding a good strategy because of employee disagreements. Instead, they should convince the employees for the need of employing changes in previous strategy. These findings show the significance of decision-making management of the company to ensure the employees are on board with a reversal strategy. Accordingly, the respondents noted that strategies are supposed to be customer-oriented; thus, they need to involve employees I such decisions since they interact more with the clients and know their needs.

Challenges to implementation of a reversal strategy dynamics

According to most of the respondents, one of the challenges they faced in implementing a reversal strategy was the rigidity to adopt the change by the employees. One of the participants reported that their employees were wondering why they would revert to an old strategy used five years prior to the covid-19 outbreak. Another respondent also commented that it is challenging to get everyone in the firm to back a change of strategy. These outcomes imply that the employees tend to be rigid to change strategy, making it difficult for them to accept a reversal strategy when they are already used to a particular approach. However, the respondents also observed that the employees follow their managers’ lead despite disagreements. This point links back to decisive leadership of management where the managers persuade and direct the junior staff on the best course when the prevailing approach is no longer practical and there is a need for a reversal strategy.

Furthermore, the companies also faced uncertainties over possible success of a reversal strategy. According to the respondents, they implemented a reversal strategy in uncertain times, such as during the Covid-19 pandemic, and were not sure whether it would restore business to profitability. Indeed, one participant stated that the pandemic severely impacted their firm, and it may take a year or two for the reversal strategy to bear fruitful result. These responses suggest that most of the time, the firms apply a reversal strategy only when the business is not line up well financially. They use a reversal strategy as fallback plan when the prevailing approach fails. At the same time, firms sometimes face a lack of commitments from the employees and other senior staff when there is a need of change in strategy and that is because of uncertain result of employing changes in plan. Three participants commented that a lack of commitment from the staff of the firm might make reversal strategy fails. Besides, since most of the firms deploy a reversal strategy at desperate times, full corporation and commitment from all departments are necessary. Another respondent also reported that some less committed employees quit their jobs when the business is not performing, and the management decides to bring a change of strategy. This point also links to he problem of uncertainty, such that the employees may be uncertain about the fruitful result of a reversal strategy, leading them to seek job opportunities elsewhere. Overall, the respondents did not report many challenges in implementing a reverse strategy since they rarely deploy it unless the firm faces a severe drop in business operation.

Successful interpretation

The one of the firms’ managers has mentioned that the idea of employing previous strategy with few changes had been built before Covid-19: exporting materials to the regular customers. When there was little recession in business and business was on last stage of survive to take operation ahead.  The progress started becoming slowing down as it used to be. We were unable to producing extra products due to financial situation. Hence, providing the materials to new and most important customers became suddenly expensive and difficult. Flexibility in operation went down. So, the management team started merging previous strategy with current plan. During implementation the process employees were interpreted well about how we can merge the prior plan into modern. Although management team was called as adopting the prior strategy as poor management, but after few commitments and giving a proper sense for merging strategy, employees started to work as team. And firm got the customers who were interested in previous products along with local customers to work with them. Hence, staff and management team started their operation successfully. The employees mentioned that when the management and CEO (if involve) are able to interpret the benefits of reversal strategy then we don’t have any excuse to cancel the merger. Managers stated that employing reversal strategy helped us to face the uncertainty and several problems that arose in recession time or in pandemic amid Covid-19. Although, it was little problematic since it took time make others agree but whatever happened, happened fruitfully.

 

[The manager] has mentioned that there are always advantages and disadvantages to make changes in strategy or merging the strategy. But when we had the problems to take our business operation, we though that we can have trail to adopt previous planning in current times and let’s see who will be agree and disagree. (Firm ‘A’, Female, manager)

‘‘The cost of employing reversals in current plan is with low cost since operation starts from existing source.’’

So, we started to collect opinions from CEO and other team members. CEO of the firm was ok with the plan, and we tried to explain why this last chance is necessary to adopt. This strategy helped us to gain the fame so may be again its time to repeat but according to market needs and time. So basically, this plan was unproblematic, and we pushed (or convinced word is better) our employees to adopt the prior plan. We had to make few changes since the type of delivery has been change then it was earlier 5 years ago. (2011-2015). This adopting prior strategy represents that we always can put efforts with giving sense to the strategy or in any possible way from shutting down the business. – (Conversation from firm B, manager and employee, Male).

 

Since the firm C is bigger than other two, they had different perception in terms of rigidly interpret about changes in plan to the employees. Firms C has a set of or a couple of teams for decision making for strategic process and every team has a leader, so it is sort of top team management. So top team management decides plan, and everybody starts to follow the process. The team management team take follow up time to time.

Note: firm C didn’t fall in any big crises, however, once they attempted reversal stratgey their one of the operations (but not in because of bad situation).

 

‘We very rarely had any issue to employ changes in plan but of course we discuss with our all-team members who ever are in the process (firm ‘C’ CEO, male)’

 

Avoid the manager proposal

Changes are complex a in any organization. The same way reversals are not always so easy to employ even though reversals are unproblematic. People who are in the process of strategy making may deny going with the proposed plan since they realized that going back to previous strategy is very outdated. Hence managers have to put extra efforts to make the team members agree. Merging or reinstituting the prior strategy has caused itself in terms of agreeing member and stakeholders. And sometimes the members of the team feel like they are pressurizing by the managers to adopt the strategy, though it is not like that. To avoid the future occurring complications, managers should interpret reversals’ pros and cons. The team should be ready to adapt the reversal failure also. Hence, reversing the strategy with changes should be an option as a substitute solution when all the way has been closed to plan other strategy.

The manager started to propose this strategy (re-instituting prior strategy) based on his prior experience in his former firm. Manager said that it is bit difficult to make employees agree and communicate. The employees feel that I am showing my seniority and trying to force them into the process. But it is not like that. We are already in critical situation, and we cannot afford any other risk. Sometimes employees are not interested in merging the plan. Actually, we try to changes the prior strategy based on if there is space to bring that into current time. Though, the result of this strategy is based on assumption; it may fail, or it may success. (Firm ‘A’& ‘B’,  managers, male and  three employees, 2 male and one female).

Sometimes, most of the staff is not in favor of changes in strategy. Getting pressurized to adopt the plan may be a bad tactic.  Due to pressure, employees/staff may think that their jobs are being threatened by termination (Mantere et al., 2012). As most of the staff is so much known to the current firm and its operations and they are not in situation to relocate or quit their jobs. But it is not only employees’ perspective, it is from mangers’ perspective too. Employees warned their manager to quit the job if merger occur. This kind of threatened exist in most of the firms. The proposed strategy creates the anxiety among the employees (whoever is in the process of strategic decision making). Thus, chances are for reversals failure.

 

‘‘I did not need to put efforts to make employees agree. Though we have had little problem occurrence in terms of making our employees. To reduce the occurrences, we all sit together every day and communicate everyday activities to plan for next. We (managers and employees) mostly are treated same way by the CEO, which gives us strength to keep our opinions on the table  (Firm A, manager, male)’’.

‘‘We only sometimes discuss with each other (I mean with employees) about any changes. We as management team discuss with CEO and employ the changes. But of course, in our firm, we really respect each-other opinions (Firm C, managers, male)’’.

 

Excerpt from the discussion in all firms

(From CEOs-Managers-employees-Manager) We all are a team, sometimes we have challenges and uncertainties, but we try to cope with the situation. There is a value of communication in our firm. We really do not go the final conclusion on based on one’s decsion. We sit together and talk, and we head to go for dinner (Firm A & B, Males).

The interviewer tried to open with respondents to get their responsibility to each other as team. The manager comes to notify that we all are very comfortable with each other wince we all have same goal for the firm’s growth. And it has mind-blowing to listen that they do not underestimate each other about their contribution towards the planning process.

‘‘To understand any strategy, first need to understand each other and that is totally dependent on how you communicate and how much you understand with each other as a team in a firm. In the process of planning the reversal strategy the CEOs of all firms reflected that, a part of conflicts between personnel there is always some argument between employees and managers about employing the changes in strategy and which good. That’s how they all are thinking about firm for a high vision to survive.

-Interview with manager who have been a team leader earlier, male, firm B.

To make changes effective in strategy, there is way to implement it by understanding the changes and its internal and external factors in a firm. The reversal can be put into action when all the team members are in favor. Changes are critical specially in prior strategy additionally, the firm is in sensitive situation to choose the strategy. And reversal strategy as an alternative solution may put a firm into persuasive growth, but there are some manners to follow it. There is need about what time (years of choosing strategy e.g., 2 or 5 years back) should be chooses to have reversal into practice and how to manage change in reversals. For prior strategy implementation, which focuses on time of strategy and its planning is about managing the change required (Johansson & Scholes, 1993) as per the emerging trends in market.

The managers cannot shape the strategy alone therefore they need everyone’s’ point of view regarding changes in planned strategy. The firm makes the strategic choices as per everyone’s’ ability that is generated from the satisfied personnel.

‘‘Though it is not tough to implement the changes in strategy but when there is difficult time for the organization, then the employees and managers are very sensitive to take decision. Employees feel that if the changes are not successful then it is waste of timing since sometime implementing changing in strategy and execute it practically take time. 

On other hand managers of firms, A and B stated that there were few times when we felt that pandemic time amid Covid.19 is going to affect our business. We had little down in our firm, and we were unable to cope up with current plan. That time, we were in need some motivational push up to go ahead. But we had one positivity in our plan that we as a team were still together.

‘‘So as management team with beliefs and , we were able to fight with our challenging time through employing substitute solution for our firm’’.

How managers cope with the reversal plan?

While managers are seeking the solution for business continuation in complex time, they are supposed to give the meaning of the plan. Means, if the managers should enough well versed to interpret their plan and motivate the employees to adapt reversal change, then there are less chances for hurdles to survive for firm. Employees want to have the sense for structure of employing reversal strategy, then they may easily agree. And if they get sense, reversal may result successfully. Because, there is a belief that only managers can steer the reversal of the strategic change in an organization (Hayens & Hillman, 2010).

When is it needed and why (according to the team)?

This strategy is built to keep the business continue or to save from shutting down. And when all the ways are closed to stay in the market then reversal strategy may be the appropriate solution or as a substitute solution as an attempting last chance. This strategy as renew strategy can be implemented with may be less efforts since it is already practiced (Mantere et al., 2012), and one has to work on pre-existing plan with some changes as per the market requirement. There are less conflicts and less efforts when this strategy is developing through employees and managers. The progressive way of implementing this strategy is that the team has already all the information about service ‘‘where to provide and what to provide’’ in one shot frame rather than finding or tangled with new customers to sort out the price or quantity of the products/materials. So, when you have surety from your end side (CEO and other team member who belongs to the strategic process) then you may proceed with re-instituting the prior strategy. And in that case, both parties ‘customer and supplier’ get the benefits. Supplier doesn’t need to shut their business operation and customers are getting the product/material as per their requirements.

 

The following encode is from the firm A and B;’ respondents, provide the evidence over the time of employing reversal strategic change and when and why it was needed.

We were doing well before pandemic. But during pandemic we got some falls and down in our business. We though it will be fine, and we will survive. We even survived until mid-year of 2021. and suddenly we go slow down in our deliveries from abroad and even from our local manufacturer, due to many people fall a sick amid Covid-19. Then, we thought of working on our previous strategy. And one day we were sitting, and we came out on a conclusion and thought that let’s go back what we were doing earlier (before 2015). So, we started check out our customer list and outlets. We reopen those and get our former customers (from firm A). and same way Firm B mentioned that we started looking out our old customers and started contacting. since we did not get enough benefits, our employees were so angry, and they said that they will leave the firm and will find the jobs so first three months we struggled to make employees agree to work on the previous strategy and we slowly made few changes in our old strategy to make that modern. And that how we started our operation which happened successfully.

But yea (firm B) I (managers) would say first six months we were not success with this old strategy formation but later we had a good communication with all team members, and we show them some sense to employ this strategy and its benefits. The employees were then agreed. and one of the employees has mentioned that there were few challenges since she was new in that firm, so she was unable to cope with the situation. She started with other project and suddenly there was a huge change for her. She was in dilemma whether to go with all employees or should she find another job. She said later on she was convinced to work on previous plan. So, she said she did not understand well. She was not told clearly about its benefit. She said she had some more new customers in her mind although they had high requirements, but no body listened her.

As per firm C response, manager stated that we were not in any demand of employing old strategy into current plan in Covid-19. Although our operation was bit slow down, but we cope with that since we are a big firm and we had quite good number of the customers. We are manufacturer and we supplied our service locally within India. We have lots of customers abroad, but we kept them on hold. But we come to know our customers in abroad got lots of problems and they had to go back to their old manufacturer, and they had to pay them little much than us. But yes, we would like state that we also have discussion quite often regarding changes in current plan and then we try to go back (about 6 months back strategy) to previous plan and bring that plan into current but for that we did not face any challenge regarding whether to merge previous strategy in to current or not from employee’s end. They (employees) take few hours or a day to think since we give them time to think as they are also involved in strategic planning and process, and they have good knowledge about customers’ needs. So, we have strong team; managers, CEO and team members who have good communication with each other. We have seen that our staff/employees have put efforts for our firm’s growth The days have been so hectic for them when we have very busy days and when we have big orders. They are same as us hence, we never need to think whether we care our teams’ opinion or not. So, it would be difficult to say, how the employees/team member of the strategic process react when you do not listen to them. They already know that we care each other, and we need each other to run a firm. As a team leader or as a team leader of the management, we need to keep the door open for everyone’s’ opinion in the process of planning. And that’s how we run our firm with flexibility and successfully.

So, when a firm is in need to go with substitute plan as a last chance, one should attempt that. 

 

 

The finding from above discussion of this dissertation also revealed that if a firm has the 1% possibility to survive based on previous strategy that allows to follow the current trends in business, It should be adopted.

The management team addressed uncertainty regarding individuals’ personal circumstances by emphasizing the continuity of individual jobs (Mantere et al., 2012) and their needs. Also, the employees and management as team are consistent with the strong commitment for firms’ growth and its sustainability in the market. Strategic planning is not between managers and employees, it is between a firm and all management team. The surety of using reversals is that it may have 90% successful result if everything goes as planned. The firm was started with that and continued. The perception among above statements appears to be that prior strategy formulation can be more effective than quitting. But different managers from different firms may have some different perspective to think about their team for i.e., how to communicate, do we care our employees and why we need their opinion. Although each member of the management is responsible for strategy implementation process and each member of the team is working to the same set of activities still manage who is responsible for decision making is the main to lead everybody in same lane with the techniques of strategic planning.

1. Reversal strategic change failure

From our evidence, we found some factors when managers mentioned that the reversal of strategic changes are not always successful when the get rejection from other team members’ end. Employees think that they are meant for working on survivals. Since in India, it is difficult to get job on good pay, but it is not hard to find similar job (since india is big country with multiple industries and firms). So, employees think it is better to find another job rather than spending time on unpredictable plan. Managers may have lack of commitments from other member of the process end to re-instituting the prior strategy, hence reversal may fail. In our finding, managers and CEOs of the firms have stated that we thought to employ reversals strategy only in one of the operations not for the whole firm. But once the firm has had the experience when reversal did not work well thus, the decision-making team had to quit the plan for merging the previous strategy into current.

Similarly, not exactly, Mantere et al., (2012) has stated from their focus group interview that when the process of merging strategy does not get in line as it was planned, employees often try to blame head of team management. Staff responds that they were not communicated well, and managers were unable to give the clarity and sense about the purpose for changes in prior strategy. And vice versa, managers had stated that the employees were told the goal of employing changes in reversal strategy, but they do not understand the criteria to employ it. So, this finding in contrast with Mantere et al., (2012) here is that I did not sense the negative attitude of employees towards strategy, I sensed the disagreement towards merger and how they were interpreted. However, both the managers and member of the strategic process deny admitting their fault from failure or even cancellation. Although, both staff and managers have had full of efforts, but they were lacking some commitments to each-others which even they did not know (interview with manager and employee together from firm ‘B’, 27^th April 2022)

This study has been interviewed the managers and staff together. And in actuality, the thinking and ego issued were found. Manager and one of the employees had almost the same working experience in same firms and both of them have some different opinion regarding agree with each other. So, it will be hard to say that personals of the firm are not responsible of failures then what else remain, although from their point view it was quite clear that they have always tried as hard as possible to do their best for firm’s growth.

Firm (A and B)’s respondents’ point of view: Our firms is doing well, and we are never behaved biased and there is no politics between us, and we all have rights to express our feeling and thoughts during any plan or strategic formation. We as employees do not make decision but we have rights to be agree or disagree. We all know our roles and responsibilities. Some time we all have different vision to think about working on planned activities. And sometimes just because of little confusion we are unable to follow the attitude of our managers. We also put our full of efforts to understand our seniors. Sometimes maybe they are unable to interpret their decision hence it leads to negative attitude vice versa if our managers think that we are with negative attitude towards his decision, if we do not agree with him.

Managers stated that the members of our team respond us totally indifferently and that affects us and our firm.

During the group interview, though they all were together, but I sensed that if one person is speaking then another one is thinking something else rather than listening the speaker. And most of them were answering what they wanted to answer. It was not what I was questioning. But still, I got my answer in the discussion.

The firms who employed reversal during Covid-19, both of the firm are now surviving well specially. One of the firms said it will take couple of years to come on track as we were doing before pandemic.

Nevertheless, there are many ways to improve the relation between managers and employees, so they can understand each other for the firm shake. Reversal can be facilitated if both staff and managers understand the importance of their commitment and show little adjustment towards process.

 

Data analysis and excerpt

 

expertise for Fixing the employees’ confusion with

Communicative skills (flexible to communicate)

understanding emotional efforts

making sense for adopting reversals

 

Reversal’s frame

 

‘’the result of reversal are unpredictable since it is not possible to measure whether employing reversal will be success or failure’’

 

(Here need to put figure from Gioia method (for  e.g. https://www.google.com/search?q=gioia+method&tbm=isch&chips=q:gioia+method,online_chips:thesis:nxlvL7Qw63w%3D&rlz=1C1GCEB_enFI852FI852&hl=en&sa=X&ved=2ahUKEwjV2sSisKP4AhW2kP0HHRV5A7MQ4lYoBXoECAEQJw&biw=1263&bih=520#imgrc=E5Qyb4gkYvLKLM)

 

Summary of the finding

This chapter presents the findings from the collected data transcripts. Accordingly, it combines responses from the CEOs and managers of three firms in India. The results have been categorized into themes to address the research questions adequately. Notably, all the three firms faced challenges during the Covind-19 pandemic, while only two applied reversal strategies to cope with the situation. In addition, managers from the three companies have acknowledged difficulties convincing their employees to adopt a prior strategy whenever the management team deems such change necessary. Table 1 below presents the initial codes generated from the interview transcripts and questionnaires in the first phase of thematic analysis.

 

Research Question	Initial codes	Excerpts supporting the codes
How do the managers successfully revise the planned change?	Transparent communication Teamwork   Conclusive leadership/persuasive managerial skills	“We communicate every day….” (Firm A) “Teamwork is unique and important….” (Firm A&B) “Managers convince employees to agree (Firm C) with the strategy….”
How do the employees react to the managerial efforts to adopt the prior strategy?	Rigid to changes   Follow managers’ lead.	“Employees are sometimes disagreeing…. (Form C)” “They are ok with the planned that managers decide (Firms A & B)….”
Which factors affect firms in implementing reversal strategy dynamics?	Uncertainty   Lack of commitment   Staff disagreements over strategy	“Success is uncertain with employing the previous strategy (Firm C & A)….” “Failures of employees’ commitment towards reversal strategy….” “Employees or leaders of the process do not agree with each other….”
What can organizations do to ensure a successful reversal strategy?	Effective communication     Teamwork   Taking responsibility	“Approach employees to adopt the reversal strategy….” “Teamwork is the importance between the management and employees….” “Taking responsibility for the quality of the product….”