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

Friesl, Martin and Garreau, Lionel and Heracleous, Loizos (2019) When the parent imitates the child:Strategic renewal through separation and reintegration of subsidiaries. Strategic Organization, 17 (1). pp. 62-94. ISSN 1476-1270

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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.

Item Type:
Journal Article
Journal or Publication Title:
Strategic Organization
Additional Information:
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/
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1410
Subjects:
ID Code:
126490
Deposited By:
Deposited On:
30 Jul 2018 10:28
Refereed?:
Yes
Published?:
Published
Last Modified:
05 Apr 2020 05:07