Remove Competitive Advantage Remove Management Remove RBV Remove Technology

When a Spinoff Makes Strategic Sense

Harvard Business Review

Let’s look at our current dominant strategy theory: the Resource-Based View or RBV, closely associated with Jay Barney. So how does RBV explain the decision to split the company into two? It seems evident that the split does not create a new resource, and it is not obvious why splitting would enable the management team to exploit existing resources better. So it is hard to explain this decision using the RBV. My own solution is to add a concept to the RBV.

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