Authors : Banyawa, Akami Peace; Isa Adamu

Volume/Issue : Volume 11 - 2026, Issue 3 - March

Google Scholar : https://tinyurl.com/4z23v555

Scribd : https://tinyurl.com/3afwetbv

DOI : https://doi.org/10.38124/ijisrt/26mar1313

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study examined the impact of turnaround strategies on the performance of Nima Foam Industry located in Bajabure, Girei Local Government Area of Adamawa State. The research focused on two key dimensions of turnaround strategy: retrenchment and diversification. The study population comprised all 43 operational managers of the company, as confirmed by the Human Resources Department. Due to the manageable size of the population, a census approach was adopted. Data were collected using a structured questionnaire designed on a 5-point Likert scale. The analysis was carried out using Partial Least Squares Structural Equation Modeling (PLS-SEM).Findings revealed that retrenchment strategy has a negative and statistically significant effect on firm performance, suggesting that measures such as downsizing and cost-cutting may hinder organizational outcomes. In contrast, the diversification strategy showed a positive and significant effect on performance, indicating that expanding operations, exploring new markets, and broadening product offerings can enhance firm outcomes. Based on these findings, the study concludes that while retrenchment should be approached with caution, diversification presents a viable path for improving performance. It is recommended that Nima Foam Industry minimize overreliance on retrenchment measures and prioritize strategic diversification efforts to sustain long-term growth and competitiveness.

Keywords : Retrenchment Strategy, Diversification Strategy, Turnaround Strategy, Firm Performance, Nima Foam Industry.

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