The make-buy decision and managing markets: the case of management buy-outs

Article Abstract:

This paper attempts to develop the issue of the internalization of transactions (the make-buy decision). Butler and Carney (1983) have developed the concept of managing markets where under certain conditions transactions will not be internalized. This paper, as well as attempting to complete this picture, also draws attention to a largely ignored aspect of organization theory - the issue of when a transaction which is already internalized will be externalized. In examining the sale of subsidiaries by parent companies an attempt is made to draw the boundaries of Williamson's divisionalized form of organization. The necessary and sufficient conditions for sale to the management are developed in the theoretical discussion, followed in the second section by empirical evidence from a survey of management buy-outs. (Reprinted by permission of the publisher.)

Analysis, Management, Planning, Management research, Organizational effectiveness, Management buyouts, Make-or-buy decisions, Make or buy decisions

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Managerial and ownership succession and corporate restructuring: the case of management buy-ins

Article Abstract:

This paper addresses the effects on corporate restructuring of changing management and ownership. First, it synthesizes a number of perspectives on corporate restructuring which involve managerial succession, voluntary restructuring, agency theory, incentives and entrepreneurship, to obtain insights into the relative impact of simultaneously changing either, neither or both management and ownership. Second, it uses case study evidence from management buy-ins to examine the effects of changing both management and ownership. The evidence suggests that whilst management may be adequately incentivized, problems may arise in respect of information asymmetries, difficulties in matching entrepreneurs to the context and monitoring by venture capitalists, and implementation of strategies. (Reprinted by permission of the publisher.)

Organizational change, Corporate reorganizations, Business sale

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The structure and management of alliances: syndication in the venture capital industry

Article Abstract:

Research on inter-firm venture capital syndicates emphasizes the influence of non-legal sanctions such as reputation effects on dominant equity holder opportunistic behavior. The impact of repeat syndicates is also discussed.

Models, Comparative analysis, Industry self-regulation, Industry self regulation, Organizational behavior, Syndicates (Finance), Organizational behaviour

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