Author(s):
1. Blaženka Hadrović Zekić, Croatia

Abstract:
The role of stakeholders on a business enterprise is of key importance. Not only that they have direct influence on business performance, but they also have affect business through connections or external influence on a company. However, stakeholders are aware of the fact that enterprises are like live beings, whereas decline is a disease. In other words, the earlier organizational decline is noticed, the easier it is to solve the problems, thus reducing the need for drastic measures of a turnaround process. From an idea (beginning) until the end of a company’s life, events to the largest extent depend on the management who is able to make business decisions based on a good accounting information system providing good and timely information. Monitoring the life cycle phases of a company is of extreme importance to management, however insider view can be narrowed. However, stakeholders especially connecter and external have different view on the same thing, which is often broad. Each business has its ups and downs. However, business problems come into existence long before they are recognised through crisis. Bankruptcy prediction models provide reliable results in short term period – up to three years, often too late. To successfully avoid decline, that is, to reduce the risk of decline and maintain business efficiency, entrepreneurs need to successfully meet expectations of key stakeholders, who continuously shape and reshape their ideas about the health of a company they are doing business with. In this paper the author explores the stakeholders\' perceptions of organizational decline on example of industrial dinosaur through monitoring internal business factors – organization’s financial indicators, fiscal control system, technology and human resources. Research questions are tested by surveying a sample of 88 stakeholders in Croatia in a scenario-based study. The results showed do stakeholders recognize potential problems within business enterprise and determine the order of importance among four determinants (financial indicators, fiscal control system, technology and human resources).

Key words:
stakeholders, turnaround, company, experimental study, Croatia

Date of abstract submission:
20.11.2013.

Conference:
REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies