Existing literature on value creation of divestitures
focuses on the antecedents of divestitures, typically
relating them to the parent company’s financial
performance. Whether and how divestitures can create
value for the divested unit remains unexplored. This
study presents an exploratory study based on multiple
cases, to examine which factors of the implementation
and structuring of a divestiture may increase the
performance of a divested unit. The emergent granular
framework consists of previously unreported aspects of
the divesting process and provides new insights into
divestitures and their outcomes. Results indicate that
antecedents alone may be insufficient for understanding
the outcomes of divestitures. Sense of opportunity
emerges as the key element of the divesting process for
the success of divested units. Different combinations of
understanding and perceived capabilities in the
divesting process affect the perception of feasibility
of the operation and the success of the divested unit.
Factors that concur with sense of opportunity in
determining the success of divested units are further
considered in the theoretical framework. pdf
