Organization and Management Theory OMT

Is synergy a barrier to business exit?

  • 1.  Is synergy a barrier to business exit?

    Posted 07-19-2020 10:13

    Is synergy, which motivates M&As and justifies the existence of multi-business firms, also a barrier to business exit that constrain flexibility of such firms when adverse changes in their environment necessitate exit from a business? This video presentation of our study with Jeff Reuer explains that, when a multi-business firm (like Google) can exit its businesses through resource redeployment, synergy often stimulates business exit instead of constraining it. Our study provides specific conditions with which this happens.

    If you want to know more about resource redeployment, the real option that we use as the central explanation in this study, please visit this channel, subscribe to it, and get updated about new videos posted.

    Best regards,

    Arkadiy

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    Arkadiy Sakhartov

    Gies College of Business

    University of Illinois at Urbana-Champaign

    E-mail: arkadiys@illinois.edu

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