Divestment Seen Through the Lens of International Business Strategy

Topics:
Divestment,
Global Strategy
Tags:
Copenhagen Business School,
Divestment,
International Business,
Lens
Source:
Copenhagen Business School

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Overview: This paper deals with divestment, i.e. the closure or sell-off of units in foreign locations, or conversely units owned by foreign firms. Such actions are discussed from the perspective of the firms making such decisions, and divestment assessments are looked at through the lens of international business strategy. Based on the integration- responsiveness framework developed by Bartlett and Ghoshal (1989), it is argued that the divestment propensities of foreign subsidiaries depend on the type of strategy pursued by the corporation. Subsidiaries of transnational corporations are in general likely to display the highest divestment rates.

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Format: PDF | Size: 301KB | Date: Nov 2003 | Pages: 29

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