The heartbeat of strategic moves
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2024-06-10
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en
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Abstract
This study explores the relationships between sequence patterns of acquisitions and divestments and their influence on financial performance through the lens of organizational learning theory. The uniqueness of this research lies in its inclusion of divestments viewed from a temporal perspective. It contributes to understanding how divestitures can be used as proactive and strategic tools to create value. By testing five hypotheses, this research tries to fill three theoretical gaps. An analysis of the high-tech industry between 2004 and 2022 shows that organisations which follow an even-event paced acquisition rhythm realize better performance than an even- or event-paced rhythm. A plausible rationale for the non-significant findings of divestiture rhythm and sequence pattern influencing financial performance, could be that divestitures do not directly impact parents’ firm financial resources. The findings contribute to organizational learning theory by showing that organisations perform better by adapting, refining or replacing routines and technologies in an even-event paced rhythm. Additionally, this research helps to understand restructuring rhythms in the institutional context in which organisations are embedded. This research opens an opportunity for further research to provide a broader understanding of various factors that can impact moderation effects between restructuring rhythms and financial performance.
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Faculteit der Managementwetenschappen