Capital market evaluation of M-form implementation and diversification strategy

Article Abstract:

Corporations seeking new organizational systems and structures to manage a new complexity of multiple products as they diversify and grow often select some kind of M-form, or multidivisional, structure. In general, investors react positively to the M-form structure, and evidence supports the hypothesis that company diversification strategy is contingently related to the valuation of M-form implementation by investors. However, M-form structure enhances the accounting-based performance in companies that focus on unrelated and, to some extent, vertically integrated diversification plans. The structure does not enhance the performance of related diversified firms.

Management, Evaluation, Economic aspects, Stocks, Investments, Stockholders, Corporations, Organizational change, Diversification in industry, Industrial diversification

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Power dependence, diversification strategy, and performance in keiretsu member firms

Article Abstract:

A study examines how power-dependence relationships in a keiretsu influence member firms' appropriation of benefits in the pursuit of product and diversification strategies. The findings suggest that powerful Keiretsu member firms are able to place more emphasis on growth in pursuing diversification strategies while less powerful ones are subject to strong monitoring and emphasize profitability.

Product Development, Market Research & Product Development, Market Targeting & Approach, Analysis, Strategic alliances (Business), Market strategy, Time to market

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Asset restructuring and business group affiliation in French civil law countries

Article Abstract:

The relationship of environmental antecedents is examined, to asset restructuring in nine French civil law countries in Latin America and Europe. However, results indicate that environmental antecedents, such as change in country development, more competition, and degradation led to increase asset restructuring.

France, Corporate reorganizations, Disinvestment

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