TY - JOUR
T1 - Three decades of subsidiary exits
T2 - Parent firm financial performance and moderators
AU - Coudounaris, Dafnis N.
AU - Orero-Blat, María
AU - Rodríguez-García, María
N1 - Funding Information:
The work by Dr. Dafnis N. Coudounaris was supported by the institutional research funding IUT ( IUT20-49 ) of the Estonian Ministry of Education and Research .
Publisher Copyright:
© 2020 Elsevier Inc.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/3
Y1 - 2020/3
N2 - This study aimed to find important constructs and relationships among models of subsidiary divestment during the period from 1989 to 2018 using correlation matrices of 80 studies, the selection of which was based on six criteria. It revealed eight important constructs, namely firm innovativeness, environmental factors in the target country, type of experience, organizational characteristics, investment strategy, parent firm financial performance, subsidiary divestment, and the moderating effects of advertising intensity and product diversification. Furthermore, it shed light on seven relationships that should be considered in future attempts to assess parent performance related to its antecedents and subsidiary divestment. Moreover, advertising intensity and product diversification were respectively weakening and strengthening moderators on firm financial performance, and advertising intensity was a weakening moderator between organizational characteristics and subsidiary divestment. The implementation of a product diversification policy did not assist in preventing subsidiary divestment. Conclusions, implications, limitations, and future research are discussed.
AB - This study aimed to find important constructs and relationships among models of subsidiary divestment during the period from 1989 to 2018 using correlation matrices of 80 studies, the selection of which was based on six criteria. It revealed eight important constructs, namely firm innovativeness, environmental factors in the target country, type of experience, organizational characteristics, investment strategy, parent firm financial performance, subsidiary divestment, and the moderating effects of advertising intensity and product diversification. Furthermore, it shed light on seven relationships that should be considered in future attempts to assess parent performance related to its antecedents and subsidiary divestment. Moreover, advertising intensity and product diversification were respectively weakening and strengthening moderators on firm financial performance, and advertising intensity was a weakening moderator between organizational characteristics and subsidiary divestment. The implementation of a product diversification policy did not assist in preventing subsidiary divestment. Conclusions, implications, limitations, and future research are discussed.
KW - Correlations
KW - Important relationships
KW - Moderators
KW - Multinomial logistic regression analysis
KW - Subsidiary divestment
UR - http://www.scopus.com/inward/record.url?scp=85079200467&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2020.01.024
DO - 10.1016/j.jbusres.2020.01.024
M3 - Journal article
AN - SCOPUS:85079200467
SN - 0148-2963
VL - 110
SP - 408
EP - 422
JO - Journal of Business Research
JF - Journal of Business Research
ER -