Journal article
Feature Article: A Resource-Based Perspective on Business Strategies of Newly Founded Subsidiaries: The Case of German Pensionsfonds
Risk management and insurance review, Vol.13(2), pp.173-193
09/2010
DOI: 10.1111/j.1540-6296.2010.01183.x
Abstract
Diversification by firms into unfamiliar areas of business is achieved either by acquisition of an existing business in the destination industry or a greenfield start-up. This article focuses on the business strategy of greenfield start-ups. We theorize and find that firms entering a market by establishing a new subsidiary rely solely on their own preexisting internal resources, making it favorable to align the business strategy of the start-up with the firm's value-generating competencies. Our empirical results, which are based on a sample of German Pensionsfonds and their parent companies, are consistent with the view that the business strategy choice of a newly founded subsidiary is substantially directed by the internal resources and competencies of the parent firm. © Risk Management and Insurance Review, 2010.
Details
- Title: Subtitle
- Feature Article: A Resource-Based Perspective on Business Strategies of Newly Founded Subsidiaries: The Case of German Pensionsfonds
- Creators
- Thomas R. Berry-Stölzle - University of IowaMuhammed Altuntas
- Resource Type
- Journal article
- Publication Details
- Risk management and insurance review, Vol.13(2), pp.173-193
- Publisher
- Blackwell Publishing Inc
- DOI
- 10.1111/j.1540-6296.2010.01183.x
- ISSN
- 1098-1616
- eISSN
- 1540-6296
- Number of pages
- 21
- Language
- English
- Date published
- 09/2010
- Academic Unit
- Finance
- Record Identifier
- 9984380393102771
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