Thirty years after Michael E. Porter: What do we know about business exit?

Academy of Management Perspectives

Volumn 21, Issue 2, 2007, Pages 41-55

  Decker, Carolin ^a   Mellewigt, Thomas ^a  

^a FREIE UNIVERSITÄT BERLIN   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 34547180374     PISSN: 15589080     EISSN: None     Source Type: Journal    
DOI: 10.5465/AMP.2007.25356511     Document Type: Review

References (89)

1. Accenture (2003). Strategic divestment study. Retrieved Monday, December 11, 2006 from https://accenture. com/Global/Research_and_Insights/Outlook/ By_Alphabet/DivestitureStrategy.htm.
2. Alexander, G. J., Benson, P. G., & Kampmeyer, J. M. (1984). Investigating the valuation effects of announcements of voluntary corporate selloffs. Journal of Finance, 39, 503-517.
3. Amburgey, T., Kelly, D., &. Barnett, W. P. (1993). Resetting the clock: The dynamics of organizational change and failure. Administrative Science Quarterly, 38, 51-73.
4. Anslinger, P. L., Klepper, S. J., & Subramaniam, S. (1999). Breaking up is good to do. McKinsey Quarterly, 1999(1), 16-27.
5. Anslinger, P., Jenk, J., & Chanmugam, R. (2003). The art of strategic divestment. Retrieved Monday, December 11, 2006 from https://accenture.com/ Global/Research_and_Insights/Outlook/By_Alphabet/DivestitureStrategy.htm.
6. Audretsch, D. B. & Mahmood, T. (1994). Firm selection and industry evolution: the post-entry performance of new firms. Journal of Evolutionary Economics, 4, 243-260.
7. Bain, J. S. (1956). Barriers to new competition. Cambridge, MA: Harvard University Press.
8. Baker, G. P. & Kennedy, R. E. (2002). Survivorship and the economic grim reaper. Harvard Business School Working Paper.
9. Barnett, W. (1990). The organizational ecology of a technical system. Administrative Science Quarterly, 35, 31-60.
10. Bergh, D. D. (1995). Size and relatedness of units sold: An agency theory and resource-based perspective. Strategic Management Journal, 16, 221-239.
11. Bergh, D. D. (1997). Predicting divestiture of unrelated acquisitions: An integrative model of ex ante conditions. Strategic Management Journal, 9, 715-731.
12. Bergh, D. D. (1998). Product-market uncertainty, portfolio restructuring, and performance: An information-processing and resource-based view. Journal of Management, 24, 135-155.
13. Bernard, A. B. & Jensen, J. B. (2001). Who dies? International trade, market structure and industrial restructuring. Tuck School of Business at Dartmouth Working Paper No. 01-03. Retrieved Monday, December 11, 2006 from http://ssrn.com/abstract=272140.
14. Bethel, J. E., & Liebeskind, J. (1993). The effects of ownership structure on corporate restructuring. Strategic Management Journal, 14 (Special Issue), 15-31.
15. Bigley, G. A. & Wiersema, M. F. (2002). New CEOs and corporate strategic refocusing: How experience as heir apparent influences the use of power. Administrative Science Quarterly, 47, 707-727.
16. Borde, S. F., Madura, J., & Akhigbe, A. (1998). Valuation effects of foreign divestitures. Managerial and Decision Economics, 19, 71-79.
17. Bowman, E. H., & Singh, H. (1993). Corporate restructuring: reconfiguring the firm. Strategic Management Journal, 14 (Summer Special Issue), 5-14.
18. Bowman, E. H., Singh, H., Useem, M., &. Bhadury, R. (1999). When does restructuring improve economic performance? California Management Review, 41 (2), 33-54.
19. Brockner, J., Grover, S., O'Malley, M. N., Reed, T. F., & Glynn, M. A. (1993). Threat of future layoffs, self-esteem, and survivors' reactions: Evidence from the laboratory and the field. Strategic Management Journal, 14 (Summer Special Issue), 153-166.
20. Burgelman, R. A. (1994). Fading Memories: A process theory of strategic business exit in dynamic environments. Administrative Science Quarterly, 39, 24-56.
21. Burgelman, R. A. (1996). A process model of strategic business exit: Implications for an evolutionary perspective on strategy. Strategic Management Journal, 17, 193-214.
22. Byerly, R. T., Lamont, B. T., & Keasler, T. (2003). Business portfolio restructuring, prior diversification posture and investor reactions. Managerial and Decision Economics, 24, 535-548.
23. Capron, L., Mitchell, W., & Swaminathan, A. (2001). Asset divestiture following horizontal acquisitions: A dynamic view. Strategic Management Journal, 22, 817-844.
24. Carroll, G., & Swaminathan, A. (1992). The organizational ecology of strategic groups in the American brewing industries from 1975 to 1990. Industrial and Corporate Change, 1, 65-99.
25. Caves, R. E. (1964)- American industry: Structure, conduct, performance. Englewood Cliffs, NJ: Prentice Hall.
26. Chang, S. J. (1996). An evolutionary perspective on diversification and corporate restructuring: Entry, exit, and economic performance during 1981-89. Strategic Management Journal, 17, 587-611.
27. Chang, S. J., & Singh, H. (1999). The impact of modes of entry and resource fit on modes of exit by multibusiness firms. Strategic Management Journal, 20, 1019-1035.
28. Cho, M. H., & Cohen, M. A. (1997). The economic causes and consequences of corporate divestiture. Managerial and Decision Economics, 18, 367-374.
29. Clineball, S. K., & Clineball, J. M. (1994). The effect of advance notice of plant closings on firm value. Journal of Management, 20, 553-564.
30. Dranikoff, L., Koller, T., & Schneider, A. (2002). Divestiture: Strategy's missing link. Harvard Business Review, 80 (5), 74-83.
31. Duhaime, I. M., &. Baird, I. S. (1987). Divestment decisionmaking: The role of business unit size. Journal of Management, 13, 483-498.
32. Duhaime, I. M., & Grant, J. H. (1984). Factors influencing divestment decision-making: Evidence from a field study. Strategic Management Journal, 5, 301-318.
33. Dunne, T., Roberts, M. J., & Samuelson, L. (1988). Patterns of firm entry and exit in the U.S. manufacturing industries. RAND Journal of Economics, 19 (4), 495-515.
34. Foster, L., Haltiwanger, J., & Krizan, C. J. (2005). Market selection, reallocation and restructuring in the U.S. retail trade sector in the 1990s. Working paper from the Bureau of the Census, December 2005.
35. Freeman, J., Carroll, G., ci Hannan, M. (1983). The liability of newness: Age dependence in organizational death rates. American Sociological Review, 48, 692-710.
36. Geroski, P. A. (1995). What do we know about entry? International Journal of Industrial Organization, 13, 421-440.
37. Gibbs, P. A. (1993). Determinants of corporate restructuring: The relative importance of corporate governance, takeover threat, and free cash flow. Strategic Management Journal, 14, 51-68.
38. Gilson, S. C. (1989). Management turnover and financial distress. Journal of Financial Economics, 25, 241-262.
39. Gilson, S. C. (1990). Bankruptcy, boards, banks, and block-holders. Joumal of Financial Economics, 27, 355-387.
40. Gilson, S. C., John, K., & Lang, L. H. P. (1990). Troubled debt restructurings. Journal of Financial Economics, 27, 315-353.
41. Gilson, S. C., & Vetsuypens, M. R. (1993). CEO compensation in financially distressed firms. Joumai of Finance, 48, 425-458.
42. Hamilton, R. T., & Chow, Y. K. (1993). Why managers divest - evidence from New Zealand's largest companies. Strategic Management Journal, 14 (Summer Special Issue), 479-484.
43. Harrigan, K. R. (1980). The effect of exit barriers upon strategic flexibility. Strategic Management Journal, 1, 165-176.
44. Harrigan, K. R. (1982). Exit decisions in mature industries. Academy of Management Journal, 25, 707-732.
45. Harrigan, K. R., & Porter, M. E. (1983). End-game strategies for declining industries. Harvard Business Review, 61 (4), 111-120.
46. Hayward, M. L. A., & Shimizu, K. (2006). De-commitment to losing strategic action: Evidence from the divestiture of poorly performing acquisitions. Strategic Management Journal, 27, 541-557.
47. Horn, J., Lovallo, D., & Viguerie, S. (2006). Learning to let go: Making better exit decisions. McKinsey Quarterly, Retrieved Friday, March 09, 2007 from the Business Source Premier Database.
48. Hoskisson, R. E., & Turk, T. A. (1990). Corporate restructuring: Governance and control limits of the internal capital market. Academy of Management Review, 15, 459-477.
49. Hoskisson, R. E., Johnson, R. A., & Moesel, D. D. (1994). Corporate divestiture intensity in restructuring firms: Effects of governance, strategy, and performance. Academy of Management Journal, 37, 1207-1251.
50. John, K., & Ofek, E. (1995). Asset sales and increase in focus. Journal of Financial Economics, 37, 105-126.
51. Johnson, R. A. (1996). Antecedents and outcomes of corporate refocusing. Journal of Management, 22, 439-483.
52. Kaiser, M. J., & Stouraitis, A. (2001). Reversing corporate diversification and the use of proceeds from asset sales: The case of Thorn EMI. Financial Management, 30 (4), 63-102.
53. Karakaya, F. (2000). Market exit and barriers to exit: Theory and practice. Psychobgy and Marketing, 17, 651-668.
54. Karim, S. (2006). Modularity in organizational structure: the reconfiguration of internally developed and acquired business units. Strategic Management Journal, 27, 799-823.
55. Klein, A. (1986). The timing and substance of divestiture announcements: Individual, simultaneous and cumulative effects. Journal of Finance, 41, 685-697.
56. Krishnaswami, S., & Subramaniam, V. (1999). Information asymmetry, valuation, and the corporate spin-off decision. Journal of Financial Economics, 53, 73-112.
57. Lang, L., Poulsen, A., & Stulz, R. (1995). Asset sales, firm performance, and the agency costs of managerial discretion. Journal of Financial Economics, 37, 3-37.
58. Makhija, M. V. (2004). The value of restructuring in emerging economies: The case of the Czech republic. Strategic Management Journal, 25, 243-267.
59. Markides, C. C. (1992). Consequences of corporate refocusing: Ex ante evidence. Academy of Management Journal, 35, 398-412.
60. Markides, C. C. (1995). Diversification, restructuring and economic performance. Strategic Management Journal, 16, 101-118.
61. Mata, J., & Portugal, P. (2000). Closure and divestiture by foreign entrants: The impact of entry and post-entry strategies. Strategic Management Joumai, 21, 549-562.
62. Matthyssens, P., & Pauwels, P. (2000). Uncovering international market-exit processes: A comparative case study. Psychology and Marketing, 17, 679-719.
63. Meck, G. (2007). Die Kosten einer Scheidung. Frankfurter Allgemeine Sonntagszeitung, 7, February 18, 2007, 33.
64. Mergers & Acquisitions: The Dealermaker's Journal. M&A Almanac 1989-2004.
65. Miles, J. A. & Rosenfeld, J. D. (1983). The effect of voluntary spin-off announcements on shareholder wealth. Journal of Finance, 38, 1597-1606.
66. Mitchell, W. (1994). The dynamics of evolving markets: The effects of business sales and age on dissolutions and divestitures. Administrative Science Quarterly, 39, 575-602.
67. Montgomery, C. A., & Thomas, A. R. (1988). Divestment: Motives and gains. Strategic Management Journal, 9, 93-97.
68. Montgomery, C. A., Thomas, A. R., &. Kamath, R. (1984). Divestiture, market valuation, and strategy. Academy of Management Journal, 27, 830-840.
69. Mulherin, J. H., & Boone, A. L. (2000). Comparing acquisitions and divestitures. Journal of Corporate Finance, 6, 117-139.
70. Nargundkar, S. V., Karakaya, F., & Stahl, M. J. (1996). Barriers to market exit. Journal of Managerial Issues, 8 239-256.
71. Nees, D. (1981). Increase your divestment effectiveness. Strategic Management Journal, 2, 119-130.
72. Nixon, T. D., Roenfeldt, R. L., & Sicherman, N. W. (2000). The choice between spin-offs and sell-offs. Review of Quantitative Finance and Accounting, 14, 277-288.
73. Porter, M. E. (1976). Please note location of nearest exit: Exit barriers and planning. California Management Review, 19 (Winter 1976), 21-33.
74. Ravenscraft, D. J., & Scherer, F. M. (1991). Divisional sell-off: A hazard function analysis. Managerial and Decision Economics, 12, 429-438.
75. Reilly, A. H., Brett, J. M., Ci Stroh, L. K. (1993). The impact of corporate turbulence on managers' attitudes. Strategic Management Journal, 14 (Summer Special Issue), 167-179.
76. Robins, J. A. (1993). Organization as strategy: Restructuring production in the film industry. Strategic Management Journal, 1 (Summer Special Issue), 103-118.
77. Rosenbloom, T. A. (2005). Buying and selling in today's market. Journal of Corporate Accounting and Finance, 16 (2), 27-30.
78. Ross, J., & Staw, B. M. (1993). Organizational escalation and exit: Lessons from the Shoreham Nuclear Power Plant. Academy of Management Journal, 36, 701-732.
79. Schendel, D. (1993). Introduction to the Summer 1993 Special Issue on 'Corporate Restructuring'. Strategic Management Journal, 14 (Summer Special Issue), 1-3.
80. Seward, J. K., & Walsh, J. P. (1996). The governance and control of voluntary corporate spin-offs. Strategic Management Journal, 17, 25-39.
81. Shimizu, K., & Hitt, M. A. (2005). What constrains or facilitates divestitures of formerly acquired firms? The effects of organizational inertia. Journal of Management, 31, 50-72.
82. Singh, H. (1993). Challenges in researching corporate restructuring. Journal of Management Studies, 30, 147-172.
83. Steiner, T. L. (1997). The corporate sell-off decision of diversified firms. Journal of Financial Research, 20, 231-241.
84. Vijh, A. M. (2002). The positive announcement-period returns of equity carveouts: Asymmetric information or divestiture gains? Journal of Business, 75 (1), 153-190.
85. Villalonga, B., & McGahan, A. M. (2005). The choice among acquisitions, alliances, and divestitures. Strategic Management Journal, 26, 1183-1208.
86. Wiersema, M. F. (1995). Executive succession as an antecedent to corporate restructuring. Human Resource Management, 34, 185-202.
87. Woo, C. Y., Willard, G. E., & Daellenbach, U. S. (1992). Spin-off performance: A case of overstated expectations? Strategic Management Journal, 13, 433-447.
88. Zajac, E. J., & Kraatz, M. S. (1993). A diametric forces model of strategic change: Assessing the antecedents and consequences of restructuring in the higher education industry. Strategic Management Journal, 14 (Summer Special Issue), 83-102.
89. Zuckerman, E. W. (2000). Focusing the corporate product: Securities analysts and de-diversification. Administrative Science Quarterly, 45, 591-619.