RESTRUCTURING CONGLOMERATES FOR GLOBAL COMPETITION: AN AGENCY‐THEORETIC PERSPECTIVE
International Journal of Commerce and Management
ISSN: 1056-9219
Article publication date: 1 January 1993
Abstract
In the 1960s, portfolio management led to conglomeration as management shifted its focus from competition to cash flows. However, dramatic changes in the business environment have put into question the fundamental logic of conglomeration as it became necessary once again to build sustainable competitive advantage. Towards this end, deconglomeration is taking place through restructurings. The process model of restructuring identifies negative value gap and the market for corporate control as antecedent factors to restructuring. The resources required for implementing a particular strategy, and management's ability to control the course of restructuring are identified as critical factors.
Citation
Surendran, S. and Acar, W. (1993), "RESTRUCTURING CONGLOMERATES FOR GLOBAL COMPETITION: AN AGENCY‐THEORETIC PERSPECTIVE", International Journal of Commerce and Management, Vol. 3 No. 1/2, pp. 56-76. https://doi.org/10.1108/eb060316
Publisher
:MCB UP Ltd
Copyright © 1993, MCB UP Limited