IDEAS home Printed from https://ideas.repec.org/a/now/jnlsmr/111.00000024.html
   My bibliography  Save this article

Retrospective on Corporate Renewal

Author

Listed:
  • Kathryn Rudie Harrigan

Abstract

An historical review of managers' corporate renewal decisions reveals an evolving pattern away from using operating turnarounds in favor of making changes in corporate scope via transactions. One explanation for this progression away from operations is that financial valuation considerations supplant other inputs to managers' strategic logics — a reflection of the rising influence of financial institutions as activist owners. Initially, financial owners embraced the earlier emphasis upon fixing underperforming resources to accomplish corporate renewal, but they soon agitated for divestitures. This evolution was supported by the rising importance of private equity firms as suitors to acquire distressed assets. As underperforming resources passed from firm to firm, until finding an owner willing to confront their operating challenges, specialized financial owners assumed greater importance in corporate renewal activities. The result was strategic owners performed fewer operational turnarounds to renew troubled corporations and divestedthem to specialists who could do them instead.

Suggested Citation

  • Kathryn Rudie Harrigan, 2021. "Retrospective on Corporate Renewal," Strategic Management Review, now publishers, vol. 2(2), pages 179-191, September.
    • Handle: RePEc:now:jnlsmr:111.00000024
    DOI: 10.1561/111.00000024
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/111.00000024
    Download Restriction: no
    File URL: https://libkey.io/10.1561/111.00000024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:jnlsmr:111.00000024. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.