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When the Parent Imitates the Child: Renewal through the Separation and Re-integration of a Subsidiary

Author

Listed:
  • Martin Friesl

    (LUMS - Lancaster University Management School - Lancaster University)

  • Lionel Garreau

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)

  • Loizos Heracleous

    (WBS - Warwick Business School - University of Warwick [Coventry])

Abstract

This paper investigates how structural ambidexterity may lead tostrategic renewal of the focal firm. Prior research has emphasized thelink between sequential ambidexterity and renewal. However, howrenewal may actually be accomplished through ‘structural' ambidexterityis not well understood. We draw on the longitudinal analysis of theseparation and subsequent re-integration of a business unit. We explorethe process through which the separation and reintegration of activitiestook place, which enable us to shed on light on the way this companyachieved strategic renewal. The temporary existence of the subsidiaryis conceptualized as a proximate isomorphic pressure, which is the coremechanism of this renewal. We contribute to the ambidexterity literatureas well as research on strategic renewal.

Suggested Citation

  • Martin Friesl & Lionel Garreau & Loizos Heracleous, 2016. "When the Parent Imitates the Child: Renewal through the Separation and Re-integration of a Subsidiary," Post-Print hal-01787366, HAL.
  • Handle: RePEc:hal:journl:hal-01787366
    as

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