Ending-competence in business closure

Abstract

Business closure and ending-competence are highly relevant concepts in a globalizing world economy where structural change is common. However, ending-competence in business closure situations is a rarely studied phenomenon, and prior theoretical development is modest. In this paper a conceptual model of ending-competence in business closure is developed. A case study examination of a business closure, involving a car manufacturing plant owned by Mitsubishi Motors Australia Ltd., allows further development of the model. The model consists of four elements: (1) earlier experiences of ending; (2) an understanding of different types of commitment; (3) the interdependence between parties; and (4) coordinating and timing the ending. The model illustrates the different roles played by upper and operational management during a closure process. An understanding of endingcompetence is important to managers of large firms and to educators of future managers.

Business relationship process management as company dynamic capability improving relationship portfolio

“…by relocating employees dedicated to prior alliance to a new partner). Ritter and Geersbro (2011) and Havila and Medlin (2012), conceptualized company relationship termination competence as a tool to deal with relationship ambiguity and a specific case of business closure. Mitrega et al (2012), complemented prior studies in this area by illustrating that organizational capabilities related to the termination of old and the initiation of new business relationships may be treated as an important factor leveraging company performance.…”

“…Moreover, prior studies on relationship management capabilities mostly focused on routines to develop and coordinate collaborative relationships Walter et al, 2006), neglecting to a large extent the changeable nature of established partnerships. Managing relationship ending and relationship initiation did not receive much attention, especially when it comes to testing theoretical models with empirical data (Cui, 2013;Havila & Medlin, 2012).…”

The relationship development aspect of production transfer

“…Havila and Medlin (2012) studied relationship ending in the context of business closure. Their case study was the closure of an Australian car manufacturing plant.…”

“…They conclude that planning ahead of the business closure is of utmost importance. Thus, they created a conceptual model of ending-competence, which consists of four elements: previous experiences of ending, an understanding of different types of commitment, the interdependence of parties, and the coordination of timing and ending (Havila and Medlin, 2012). Alajoutsijärvi et al (2000) suggest a matrix of exit strategies that are either direct or indirect as well as other-oriented or self-oriented.…”

Production Phase-out During Plant Shutdown

“…Simultaneous to facility closures, new ones start and the shifts need to be regarded as normal business alternative. Linking shutdown to project management makes ending a natural phenomenon [11].…”