Manuscript_foreign sell off paper_JBR_accepted.pdf (440.48 kB)
Firm-specific resources and foreign divestments via selloffs: value is in the eye of the beholder
journal contribution
posted on 2023-06-09, 20:23 authored by Palitha Konara, Panagiotis GanotakisIn this paper, by using a large sample of foreign subsidiaries in Spain, we examine what explains their divestment via sell-offs. By integrating resource-based theory with foreign divestment literature, we examine the role that different subsidiary level resources and innovative capabilities play on its likelihood of being divested. We also argue and empirically show that the most influential subsidiary characteristics that determine divestment differ depending on whether the acquiring firm is a host-country firm or a foreign firm. Our results suggest that foreign subsidiaries are less likely to be sold off when they are characterized by high levels of product innovation performance, human capital or have introduced organizational innovations. Moreover, subsidiaries with export-market oriented capabilities were more likely to be divested to other foreign buyers whereas subsidiaries with domestic-market oriented capabilities were more likely to be divested to domestic buyers.
History
Publication status
- Published
File Version
- Accepted version
Journal
Journal of Business ResearchISSN
0148-2963Publisher
ElsevierExternal DOI
Volume
110Page range
423-434Department affiliated with
- Strategy and Marketing Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2020-01-24First Open Access (FOA) Date
2021-09-01First Compliant Deposit (FCD) Date
2020-01-23Usage metrics
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