TY  - JOUR
AB  - Purpose The gap between management theory and practice has been much criticized. To help bridge the divide, a synthesis of empirical, theoretical and practice literature is offered, along with an application of the widely used VRIO framework, to contend that developing a focused corporate parenting approach as a core competence serves as a source of competitive advantage for diversified companies.Design/methodology/approach A synthesis of empirical, theoretical and practice literature is presented, beginning with a discussion of why and how firms diversify; the relative performance of firms that pursue related and unrelated diversification; an application of the resource-based view, core competencies and the VRIO framework; a description of focused corporate parenting as a core competency; a prescription for how diversified firms can implement a focused corporate parenting approach; and implications for research.Findings Developing a focused corporate parenting approach as a core competence serves as a source of competitive advantage for diversified companies.Research limitations/implications The synthesis of empirical, theoretical and practice literature presented provides a foundation for future research into the impact of focused corporate parenting on diversified firm performance.Practical implications The paper includes a prescription for how diversified firms can implement a focused corporate parenting approach.Originality/value The application of the resource-based view and core competency theories to corporate parenting provides managers with the rationale for and methodology to focus their corporate parenting activities.
VL  - 40
IS  - 3
SN  - 0275-6668
DO  - 10.1108/JBS-01-2018-0011
UR  - https://doi.org/10.1108/JBS-01-2018-0011
AU  - Galpin Timothy
PY  - 2019
Y1  - 2019/01/01
TI  - Strategy beyond the business unit level: corporate parenting in focus
T2  - Journal of Business Strategy
PB  - Emerald Publishing Limited
SP  - 43
EP  - 51
Y2  - 2024/04/16
ER  -