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Divestment and organizational adaptation

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  • Wright, Mike

Abstract

The reasons for divestment, its mechanisms and consequences, have received little attention in the strategic management literature. The author has conducted a major survey and interviewed senior executives of firms making divestments and of those divested. This article reports his findings and conclusions. Divestment may take many forms, which arise from the strategic needs of the firms and the ways in which their environments are changing around them. Divestment cannot be viewed in isolation. It interacts with a number of organizational and environmental conditions through time, and this article concludes by analyzing the process in a six stage descriptive model.

Suggested Citation

  • Wright, Mike, 1985. "Divestment and organizational adaptation," European Management Journal, Elsevier, vol. 3(2), pages 85-93, June.
  • Handle: RePEc:eee:eurman:v:3:y:1985:i:2:p:85-93
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    Cited by:

    1. Mann, Manveer & Byun, Sang-Eun, 2017. "To retrench or invest? Turnaround strategies during a recessionary time," Journal of Business Research, Elsevier, vol. 80(C), pages 24-34.
    2. Aurélie Sannajust & Alexander Groh, 2023. "Pioneering management buy-out and entrepreneurial finance research: Mike Wright’s research legacy," Small Business Economics, Springer, vol. 60(1), pages 1-35, January.

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