Institutional Forces and Divestment Performance of South African Conglomerates. Case study evidence

David King, David Coldwell, Tasneem Joosub, David McClelland

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The history of South Africa serves as a natural experiment in how a changing institutional environment impacts corporate structure. Based on institutional theory, we anticipate higher performance through emulating successful strategies or through restructuring consistent with mimetic isomorphism. Conversely, coercive isomorphism results from restructuring driven by regulation, and we anticipate that they are associated with lower performance. To examine these relationships, we consider divestment by South African firms over two periods, using mixed methods. We find tentative support for our predictions, and we outline implications for policymakers, as well as for management research and practice.

Original languageEnglish
Pages (from-to)338-353
Number of pages16
JournalSouth African Journal of Economic and Management Sciences
Volume18
Issue number3
DOIs
Publication statusPublished - 31 Aug 2015
Externally publishedYes

Fingerprint

Conglomerate
Divestment
Africa
Isomorphism
Mixed methods
Management research
Politicians
Natural experiment
Institutional theory
Prediction
Corporate structure
Institutional environment
Management practices
High performance
South Africa

Keywords

  • Case studies
  • Coercive and mimetic isomorphism
  • Divestment
  • Event analysis
  • Institutional theory

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Cite this

Institutional Forces and Divestment Performance of South African Conglomerates. Case study evidence. / King, David; Coldwell, David; Joosub, Tasneem; McClelland, David.

In: South African Journal of Economic and Management Sciences, Vol. 18, No. 3, 31.08.2015, p. 338-353.

Research output: Contribution to journalArticle

King, David ; Coldwell, David ; Joosub, Tasneem ; McClelland, David. / Institutional Forces and Divestment Performance of South African Conglomerates. Case study evidence. In: South African Journal of Economic and Management Sciences. 2015 ; Vol. 18, No. 3. pp. 338-353.
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