Remove Industry Remove Management Remove RBV Remove Technology
article thumbnail

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. 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? 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.