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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The More Experience You Have, the Worse You Are at Bootstrapping

Harvard Business Review

But a new study on Hollywood producers in the Strategic Management Journal reminds us that it’s not that simple. The researchers behind this new study point out that recent work on RBV has focused on managers as the ones generating the revenue from the company’s resources.

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