Business portfolio restructuring, prior diversification posture and investor reactions

Byerly, Robin T.; Lamont, Bruce T.; Keasler, Terrill R.

doi:10.1002/mde.1116

Cited by 20 publications

(15 citation statements)

References 62 publications

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“…In this paper we made the disintegrating firm the unit of our analysis and we investigated whether vertical disintegration improves operating performance. Because disintegration-like most types of organizational restructuring-is not a homogeneous phenomenon (Byerly et al, 2003), we also developed and tested predictions concerning the conditions under which disintegration is most likely to improve performance.…”

Section: Discussionmentioning

confidence: 99%

Improving performance through vertical disintegration: evidence from UK manufacturing firms

Desyllas

2008

Manage Decis Econ

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Unlike previous work on the vertical integration-performance relationship, we investigate the performance consequences of vertical disintegration. We offer a theoretical justification for the disintegration decision and we condition the disintegration effect on performance on the initial degree of firm integration, the timing and the direction of disintegration. Using a sample of UK manufacturing firms and controlling for disintegration endogeneity, we find that disintegration eventually results in improved operating performance, particularly when disintegration occurs as a reaction to poor performance and in cases of forward between-sector disintegration. However, being highly integrated does not guarantee gains from disintegration. The implications of these findings are discussed. Copyright © 2008 John Wiley & Sons, Ltd.

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Section: Discussionmentioning

confidence: 99%

Improving performance through vertical disintegration: evidence from UK manufacturing firms

Desyllas

2008

Manage Decis Econ

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“…Third, the literature identifies three possible directions a firm may take by implementing a BPR strategy: a) refocusing, which is when the firm owns a core business with unique capabilities, so it decides to divest peripheral businesses and renew and concentrate its efforts on its existing core business (Chatterjee et al, 2003;Geroski and Gregg, 1994;Haynes et al, 2003); b) repositioning, when the firm identifies a new core business and decides to regroup its resources around the new business (Byerly et al, 2003;Chang, 1996), and c) firm liquidation, as the last option and occurs when it is impossible to identify a core business that generates more economic value than by selling all the company's lines of business (Byerly et al, 2003;Sengupta and Faccio, 2011).…”

Section: Literature Review On Corporate and Business Portfolio Restrumentioning

confidence: 99%

Quién es quién en la investigación sobre Reestructuración de la Cartera de Negocios: La estructura intelectual

Sánchez-Riofrío

Guerras‐Martín

Forcadell

2017

Rev. esp. doc. cient.

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There are few studies applying extensive qualitative and quantitative methods for addressing the research into Business Portfolio Restructuring (BPR). The aim of this paper is to identify the main authors, journals and studies that have informed the intellectual platform underpinning BPR as well as identifying the topics that have had the greatest impact. In this study, bibliographic references cited between 1959 and 2012, are analyzed using different bibliometric techniques. Three main results are found: first, the intellectual basis for this field involves a multidisciplinary and multifaceted literature, although the disciplines of finance and management are the principal contributors to research into BPR. Second, authors, journals and papers are identified to track the main framework of portfolio restructuring. Finally, the main forerunners of this study area are corporate strategy, divestitures, diversification and corporate governance. This is a study that contributes not only to the field of strategic management but also to information management.Keywords: Corporate restructuring; business portfolio restructuring; intellectual structure; bibliometric techniques; scientific production. Quién es quién en la investigación sobre Reestructuración de la Cartera de Negocios: La estructura intelectualResumen: Son pocos los estudios que aplican métodos cualitativos y cuantitativos extensivos para abordar la investigación sobre Reestructuración de la Cartera de Negocio (RCN). El objetivo de este trabajo es identificar los principales autores, revistas y estudios que han informado a la plataforma intelectual subyacente a RCN e identificar los temas que más han impactado. En este estudio, las referencias bibliográficas citadas entre 1959 y 2012, se analizan utilizando diferentes técnicas bibliométricas. Se encuentran tres resultados principales: primero, la base intelectual de este campo involucra una literatura multidisciplinaria y multifacética, aunque las disciplinas de finanzas y administración son los principales contribuyentes a la investigación en RCN. En segundo lugar, los autores, las revistas y los documentos se identifican para seguir el marco principal de la reestructuración de la cartera. Finalmente, los principales precursores de esta área de estudio son la estrategia corporativa, las desinversiones, la diversificación y el gobierno corporativo. Este es un estudio que contribuye no sólo en el campo de la gestión estratégica, sino también en el campo de la gestión de la información.Palabras clave: Reestructuración corporativa; Reestructuración de la cartera de negocios; Estructura intelectual; Técnicas bibliométricas; Producción científica.

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“…At least Montgomery and Thomas (1988) differentiate between types of divesting firms because companies react to a performance decline in different ways: while 'tactical' divestors use business exits to raise funds in order to improve short-term performance, 'strategic' divestors are likely to reevaluate and eventually change their strategy with a business exit. The latter is more offensive and risky than a divestiture without the simultaneous pursuit of strategic change, especially in terms of repositioning (Byerly, Lamont and Keasler, 2003). Risktaking is less likely in the face of performance problems, because managers tend to adopt defensive strategic choices when survival is perceived to be at risk (Laughhunn, Payne and Crum, 1980;Shimizu, 2007).…”

Section: The Antecedents Of Business Exit As Signals Of the Need For mentioning

confidence: 99%

Business Exit and Strategic Change: Sticking to the Knitting or Striking a New Path?

Decker

Mellewigt

2012

British J of Management

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The purpose of this study is to examine the potential of business exit for initiating strategic change in divesting parent firms. In contrast to prior literature that mainly investigates the impact of different antecedents on the likelihood of business exit in general, this study additionally tests the influence of these antecedents on the choice between two exit types with a cross‐industry sample of divesting firms listed in the German CDAX over the time period 1999–2004. A divestiture involving strategic change is a strategic business exit; otherwise it is denoted as status quo preserving. The findings reveal that a relatively highly dissipated focus does not automatically enhance the likelihood of business exit in general and status‐quo‐preserving business exit in particular. CEO turnover and pressures exerted by institutional investors predict neither strategic nor status‐quo‐preserving business exit. Low firm performance does not nurture the likelihood of business exit per se but especially promotes status‐quo‐preserving business exit.

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Business portfolio restructuring, prior diversification posture and investor reactions

Cited by 20 publications

References 62 publications

Improving performance through vertical disintegration: evidence from UK manufacturing firms

Improving performance through vertical disintegration: evidence from UK manufacturing firms

Quién es quién en la investigación sobre Reestructuración de la Cartera de Negocios: La estructura intelectual

Business Exit and Strategic Change: Sticking to the Knitting or Striking a New Path?

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