Cloning success or falling into a trap: The role of a founder CEO in the corporate comeback again

We aim to examine the relationships among founder CEOs, turnaround strategies, prior turnaround success, and subsequent turnaround performance. Specifically, we investigate whether the presence of a founder CEO influences a firm's turnaround strategies and performance and whether prior successful turnaround experience can be replicated in subsequent recovery efforts. A sample of 117 publicly listed firms across various industries in Taiwan was collected, and data were obtained from the Taiwan Economic Journal to test the proposed hypotheses. The findings suggest that founder CEOs are less inclined to pursue market-based turnaround strategies, which may be less effective in facilitating successful corporate recovery during subsequent turnaround efforts. Additionally, a firm's prior turnaround success may be positively related to its subsequent turnaround performance under certain conditions. In other words, although prior success can facilitate future performance, overreliance on it may create potential drawbacks. Furthermore, prior turnaround experience appears to moderate the relationship between market-based turnaround strategies and subsequent turnaround performance under specific contextual conditions.