Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism

Girod, Stephane and Whittington, Richard (2016) Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism. Strategic Management Journal, 38 (5). pp. 1121-1133.

Abstract

Research summary: Reorganization has been proposed as a key dynamic capability. This study compares the performance outcomes of two forms of reorganization, differing in their pervasiveness: organizational restructuring and organizational reconfiguration. Our dynamic panel data analysis of large U.S. corporations between 1985 and 2004 finds contrasting performance outcomes for these two forms of reorganization: in general, the more pervasive restructuring is associated with positive performance outcomes, while the more limited reconfiguration is associated with negative performance outcomes. However, outcomes vary by environment. Consistent with dynamic capabilities theory, we find evidence that in dynamic environments reconfiguration outcomes turn positive, while restructuring outcomes turn negative. We discuss implications for dynamic capabilities theory and managerial policy.

Item Type: Article
Keywords: reorganization; reconfiguration; restructuring; dynamic capabilities; environmental dynamism
Subject(s): Strategy
Date Deposited: 08 Nov 2016 11:16
Date of author-version deposit: 24 October 2016
Last Modified: 12 Jul 2017 09:08
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6229

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