Battleground for Business – The Moderating Effect of Financial Munificence in Strategic Restructuring: Evidence from the Defense Industry.
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2025-06-23
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en
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This thesis explores the impact of strategic restructuring, particularly acquisitions and divestitures, on long-term firm performance in highly regulated and capital-intensive industries. Based in the Resource-Based View (RBV) and its extension using resource orchestration theory, it is used to assess whether these restructuring activities, in response to external pressure and uncertainty, result in long-term performance gains. Additionally, the thesis also examines how financial munificence, the accessibility of external financial capital, credit, and funding sources, directly impacts performance and moderates the performance effect of such restructuring efforts. Using a 20-year panel data set (2000-2020) of 663 public firms in the global defense industry. The defense industry is characterized by regulatory complexity and financial dependence, making it a particularly relevant context for studying these dynamics. The results find that acquisitions and divestitures have no statistically significant direct effect on long-term performance. Conversely, financial munificence has a positive direct impact, highlighting its function as a structural enabler while the moderating effect remains insignificant. By combining restructuring strategies with external capital dynamics, this thesis adds to strategic management literature, while offering practical insights into how firms in highly regulated and capital-intensive industries can better maintain performance
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Faculteit der Managementwetenschappen