When a Spinoff Makes Strategic Sense
Harvard Business Review
AUGUST 18, 2014
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.