Open AccessInstitutional forces and divestment performance of South African conglomerates: Case study evidence
Author(s) -
David A. King,
David Coldwell,
Tasneem Joosub,
D. E. McClelland
Publication year - 2015
Publication title -
suid-afrikaanse tydskrif vir ekonomiese en bestuurswetenskappe/south african journal of economic and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.277
H-Index - 17
eISSN - 2222-3436
pISSN - 1015-8812
DOI - 10.4102/sajems.v18i3.1196
Subject(s) - divestment , restructuring , isomorphism (crystallography) , institutional theory , business , economic system , industrial organization , political science , economics , economic geography , management , finance , chemistry , crystal structure , crystallography
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