The Impact of Restructuring on Improving Performance in the Mature Stage of Corporate Life Cycle
The Impact of Restructuring on Improving Performance in the Mature Stage of Corporate Life Cycle

Summary/Abstract: In their development stage enterprises undergo various phases that are marked by crisis. Companies that are at the last stage of the corporate life cycle are characterized by a decline in business performance. Such a situation raises the need for enterprise restructuring in order to undertake all the activities aimed at restoring the enterprises’ top form. The aim of this paper is to show that restructuring of enterprises in the mature phase of the corporate life cycle (recrimination or bureaucracy) has a direct impact on the enterprise’s improved performance. The initial sample comprises 30 companies that are in different phases of the corporate life cycle using the Ichak Adizes’s methodology. For the purpose of proving the hypothesis set out in the sample, 15 enterprises are in the maturity phase, while 11 enterprises are undergoing a restructuring process. Research has shown that enterprises that successfully underwent the restructuring process have significantly increased business performance. The business performance trend was observed in the two-year business period of the enterprise in order to compile the results before the restructuring and after the restructuring.

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