Abstract for: A System Dynamics based analysis of corporate turnaround process

The paper was developed based on the analysis of the turnaround of the Fiat Group, a large au-tomotive manufacturer that generated the Stellantis group, led by Sergio Marchione, in the period 2004-2009 that has been analyzed using the longitudinal logic of the case study supported by a System Dynamics based representation of critical process. The case study analysis allows us to investigate, with the support of System Dynamics conceptual tools, how top manager can act on relevant variables to govern turnaround processes. In particular we focused on the critical importance of the top management strategic intentions and on the process of organizational change. We identified three main processes that describe the strategic change. The first is related to the evolution of organizational context leveraging on an optimal equilibrium between entrepreneurial orientation and strategic discipline, the process of organizational change creates the right environment in which strategic initiatives, that can improve firm’s positioning and performance. The process of strategic initiatives development is largely dependent from the availability of strategic tangible and intangible resources. The System Dynamics representation gives evidences of how turnaround process can be described by negative feedback loops with goal seeking behaviour, that tend to bring to equilibrium a system - the struggling firm - characterized by instability and uncertainty. For language review