Multiple recipes for success – A configurational examination of business portfolio restructurings

Hildebrandt, P.Ø. Braarud M.; Oehmichen, Jana; Pidun, Ulrich; Wolff, Michael

doi:10.1016/j.emj.2017.05.007

Cited by 8 publications

(3 citation statements)

References 62 publications

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“…This is consistent with the findings by Anderson and Reeb (2003a), who-based on a study of S&P 500 firms-found that family firms tended to outperform their peers in the nonfamily sector. By contrast, in a radical change episode, the equilibrium within an established industry changes significantly within a short time (Hildebrandt et al 2018). In this case, we put forward that familiness tends to delay cognition, hinder the decision to engage in the strategic change of the required scope and magnitude, and reduce the implementation speed.…”

Section: Discussionmentioning

confidence: 94%

Unbundling Strategic Change in Family Firms: the Influence of Familiness on the Strategic Change Process

Belling

Pidun

Knyphausen‐Aufseß

2021

Schmalenbach J Bus Res

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The viability and adaptation of family firms is a key research area owing to the longevity and transgenerational vision of the family. Throughout their development, firms transition through strategic change episodes with a potentially significant impact on their performance and survival. In this article, we combine family firm with strategic change research to propose how familiness supports or limits strategic change. We put forward three tendencies of family firms in their ability to deal with strategic change. First, familiness creates an overemphasis on the cognition of gradual change triggers but limits the cognition of radical change triggers. Second, familiness creates a tendency to inappropriately scope and dimension strategic change in radical change episodes to protect the value of legacy resources. Third, familiness supports endurance during strategic change implementation while also creating a tendency to be too slow or stubborn when implementing an insufficient change decision.

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Section: Discussionmentioning

confidence: 94%

Unbundling Strategic Change in Family Firms: the Influence of Familiness on the Strategic Change Process

Belling

Pidun

Knyphausen‐Aufseß

2021

Schmalenbach J Bus Res

Self Cite

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“…Similarly, in developed countries, compared to restructuring, reconfigurations within organizations can also provide companies with more flexibility and responses that are better suited to the environment. Companies in a more dynamic environment can consider reconfigurations as strategic alternatives to pursue better firm performance in more mature industries (Girod & Whittington, 2017;Hildebrandt, Oehmichen, Pidun, & Wolff, 2018;Karim, 2006). In addition, companies with better R&D and marketing capabilities can further strengthen their ability to improve firm performance through reconfigurations, thus enabling those companies to respond rapidly to technological trends and business opportunities in their industries.…”

Section: Theoretical and Managerial Implicationsmentioning

confidence: 99%

Business portfolio reconfiguration and firm performance: The contingency role of organizational capabilities, slack and ownership

Chen

Chen²,

Hsieh³

et al. 2022

Journal of Management & Organization

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The purpose of this study aims to explore the relationships between business portfolio reconfiguration and firm performance in developing countries as well as the moderating roles played by organizational slack, capabilities and ownership structure. By using the perspectives of dynamic capabilities, resources-based view and social network, this study proposes that there is a U-shaped relationship between business portfolio reconfiguration and firm performance. Furthermore, while R&D capability, marketing capability and foreign ownership are expected to positively moderate this U-shaped relationship, organizational slack, state and domestic ownership may potentially make this U-shaped relationship less pronounced. We draw our observations from Shanghai and Shenzhen Stock Exchanges in China from 2008 to 2017, and obtain 26,151 firm-year observations, which are consisted of 3,508 publicly traded companies. The results generally support our hypotheses, and some theoretical and practical implications are extracted from this study.

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“…Research consistently indicates that poor performance triggers portfolio restructuring within corporations (Bergh and Lawless, 1998; Berry, 2013; Hildebrandt et al ., 2018; Shimizu, 2007) and higher performance lowers divestment likelihood (e.g. Berry, 2010; Brauer, 2006; Damaraju, Barney and Makhija, 2015; Hoskisson, Johnson and Moesel, 1994; Kolev, 2016).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Predicting the Divestment of Prior Acquisitions

Amiri

King

Demarie

et al. 2021

British J of Management

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We evaluate whether, in addition to seeking higher stock performance from acquisitions, firm managers also seek predictable stock performance. Building on prior research, we argue that higher volatility in a firm's stock performance following an acquisition is associated with divestment of a prior acquisition. Survival analysis of a longitudinal, panel dataset of 738 matched US acquisitions with 9,973 firm-year observations shows that higher volatility in an acquiring firm's stock performance, following an acquisition, significantly predicts divestment of a prior acquisition. This effect is independent and stronger than the effect of the mean stock performance of an acquiring firm following an acquisition. We also find moderating effects for acquisition relatedness and acquiring firm stock performance after an acquisition. When an acquired unit is related to the parent firm's operations, it will be more likely to be divested if subsequent stock performance displays higher volatility. Still, higher overall stock performance makes a parent firm less likely to divest an acquired unit, suggesting that larger mean returns override concerns about higher stock performance volatility during corporate restructuring. Theoretical backgroundCorporate strategy suggests that managers constantly re-evaluate their portfolio of businesses and restructure it by adding and subtracting

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Multiple recipes for success – A configurational examination of business portfolio restructurings

Cited by 8 publications

References 62 publications

Unbundling Strategic Change in Family Firms: the Influence of Familiness on the Strategic Change Process

Unbundling Strategic Change in Family Firms: the Influence of Familiness on the Strategic Change Process

Business portfolio reconfiguration and firm performance: The contingency role of organizational capabilities, slack and ownership

Predicting the Divestment of Prior Acquisitions

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