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Beyond the metaphor: The morphology of organizational decline and turnaround

This study is based on the thesis that Vladimir Propp's (1928/2001) theory of folktale structure functions not only as a morphology of folktales, but also as a structural, deep-level model of any process that includes crisis and recovery. We essentially suggest that corporate decline and turnaround processes can be emplotted into a folktale-like structure that supports Propp's theory and thereby helps uncover deep-level mechanisms governing the process. The developed model describes seven mechanisms that drive the organization from initial strategic harmony to disharmony, and furthermore to the construction of a new strategic harmony, thus creating a perspective for the interpretation of long-term organizational decline and turnaround processes. Theoretical and practical implications are offered.