Organizational failure and turnaround in public sector organizations: A systematic review of the evidence

Background: Existing evidence with regards to the organizational failure and turnaround are derived from the private sector. There is few corresponding review of the empirical evidence in the public sector. This review aimed at providing a summary of the research investigating the above items in the public sector. Methods: A search strategy was developed to identify empirical studies relating to organizational failure or turnaround process in public sector services on HMIC, Medline; SSCI, ASSIA, Business Source Premier, The SIEGLE and the ASLIB Index. A total of 11 673 studies were identified initially. After screening process of the articles, 23 studies were included in the systematic review. The selected studies were appraised and findings were synthesized. Results: Symptoms of organizational failure along with secondary and primary causes of failure within different public organizations were identified. Factors that trigger organizational change were extracted. The review revealed that most of the studies employed turnaround strategies including reorganization, retrenchment, and repositioning, which are referred to “3Rs” strategies. The role of contextual factors in turnaround and the impact of turnaround strategies on organizational performance were explored. Furthermore, the key similarities and differences between 2 sectors in organizational failure and the turnaround process were demonstrated. Conclusion: This review highlighted the gap in the literature in organizational failure and turnaround interventions within the public sector.