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  • Strategic_renewal_through_separation_and_reintegration_of_subsidiaries_Final_Accepted

    Rights statement: The final, definitive version of this article has been published in the Journal, Strategic Organization, 17 (1), 2019, © SAGE Publications Ltd, 2019 by SAGE Publications Ltd at the Strategic Organization page: http://journals.sagepub.com/home/SOQ on SAGE Journals Online: http://journals.sagepub.com/

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When the parent imitates the child: Strategic renewal through separation and reintegration of subsidiaries

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<mark>Journal publication date</mark>01/2019
<mark>Journal</mark>Strategic Organization
Issue number1
Volume17
Number of pages33
Pages (from-to)62-94
Publication statusPublished
Early online date24/08/18
Original languageEnglish

Abstract

This paper shows how the separation and subsequent reintegration of a subsidiary becomes a source of strategic renewal for the parent company. We develop a process model that reveals how structural ambidexterity can generate ‘proximate isomorphism’ that gives rise to parent level exploration and the parent’s gradual convergence with the subsidiary. This creates the conditions for reintegration, and ultimately, strategic renewal. We identify the triggers for proximate isomorphism as well as the mechanisms through which it unfolds. We draw on the longitudinal analysis of strategic renewal of Immochan between 2006 and 2018. Our findings contribute to extant research by developing the link between structural ambidexterity and strategic renewal and, particularly, by showing that proximate isomorphism acts an integrating mechanism between the parent and the explorative unit.

Bibliographic note

The final, definitive version of this article has been published in the Journal, Strategic Organization, 17 (1), 2019, © SAGE Publications Ltd, 2019 by SAGE Publications Ltd at the Strategic Organization page: http://journals.sagepub.com/home/SOQ on SAGE Journals Online: http://journals.sagepub.com/