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Redeployment of corporate resources: A study of acquisition strategies in the US defense industries, 1978-1996

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  • Jaideep Anand

    (Fisher College of Business, Columbus, OH 43210-1144, USA)

Abstract

How are excess resources redeployed when an industry declines? These resources can be redeployed within the firm through diversification and across firms through a market interface. Acquisitions can play an important role in either of these mechanisms. First, acquisitions can provide new complementary resources and facilitate the redeployment of excess resources within the firm through recombination. Second, horizontal acquisitions can facilitate consolidation and disposal of excess or redundant resources that can be redeployed elsewhere through a market interface. I study both these kinds of acquisitions in the US defense industries (1978-1996), and explain the choice between the two acquisition strategies on the basis of the business environment, underlying resources of the firm, and to a lesser extent, as a consequence of agency forces within the firm. I derive implications for strategic transformation of firms, and the resource-based and evolutionary perspectives. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Jaideep Anand, 2004. "Redeployment of corporate resources: A study of acquisition strategies in the US defense industries, 1978-1996," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 383-400.
  • Handle: RePEc:wly:mgtdec:v:25:y:2004:i:6-7:p:383-400
    DOI: 10.1002/mde.1197
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    Cited by:

    1. Niron Hashai, 2015. "Within-industry diversification and firm performance—an S-shaped hypothesis," Strategic Management Journal, Wiley Blackwell, vol. 36(9), pages 1378-1400, September.
    2. Jiang, Guoliang F. & Holburn, Guy L.F. & Beamish, Paul W., 2014. "The Impact of Vicarious Experience on Foreign Location Strategy," Journal of International Management, Elsevier, vol. 20(3), pages 345-358.
    3. Arkadiy V. Sakhartov & Timothy B. Folta, 2015. "Getting beyond relatedness as a driver of corporate value," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 1939-1959, December.
    4. repec:bla:stratm:v:38:y:2017:i:11:p:2168-2188 is not listed on IDEAS

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