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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. Typically, resources that satisfy these conditions are capabilities or know-how that have been developed over time and are hard to transfer or document. We know this because both businesses earn returns that are reasonable for their industries. So how does RBV explain the decision to split the company into two?