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The effect of exit barriers upon strategic flexibility
Author(s) -
Harrigan Kathryn Rudie
Publication year - 1980
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250010206
Subject(s) - competitor analysis , business , flexibility (engineering) , construct (python library) , order (exchange) , industrial organization , marketing , purchasing , competitive advantage , strategic management , economics , management , computer science , finance , programming language
The conceptual construct, exit barriers, is expanded using both statistical findings and the results of field studies. The immobility of resources, it is suggested, can be overcome by helping marginal competitors to exit from potentially volatile businesses. The implementation of such tactics can be adapted to the firm's own strategic commitment and to the nature of the business in question, although it is expected that firms which might consider purchasing the physical and intangible assets of competitors in order to help them to scale high exit barriers, must themselves perceive the business to be of sufficiently high strategic importance to do so.