search query: @author Bergh, D. D. / total: 5
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| Author: | Bergh, D. D. Lawless, M. W. |
| Title: | Portfolio restructuring and limits to hierarchical governance: The effects of environmental uncertainty and diversification strategy |
| Journal: | Organization Science
1998 : JAN-FEB, VOL. 9:1, p. 87-107 |
| Index terms: | PORTFOLIO MANAGEMENT COMPANY PROSPECTUSES MERGERS UNCERTAINTY DIVERSIFICATION STRATEGY |
| Language: | eng |
| Abstract: | This study tests whether acquisitions and divestitures are related to environmental uncertainty and diversification strategy. The study predicts that increases in environmental uncertainty would reduce firm's ability to manage its subsidiaries efficiently and would lead to divestiture. Conversely, the study predicts that decreases in environmental uncertainty would enable a firm to manage its subsidiaries more efficiently and would lead to acquisition. Those predicitions were expected to be strongest for firms with intermediate levels of diversification, as such firms are believed to be the most difficult to manage efficiently. The results suggest that the relationship between diversification strategy and portfolio restructuring depends on environmental uncertainty. |
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