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The effect of exit barriers upon strategic flexibility

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  • Kathryn Rudie Harrigan

Abstract

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.

Suggested Citation

  • Kathryn Rudie Harrigan, 1980. "The effect of exit barriers upon strategic flexibility," Strategic Management Journal, Wiley Blackwell, vol. 1(2), pages 165-176, April.
  • Handle: RePEc:bla:stratm:v:1:y:1980:i:2:p:165-176
    DOI: 10.1002/smj.4250010206
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    Citations

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    Cited by:

    1. Kovenock, Dan & Phillips, Gordon M, 1997. "Capital Structure and Product Market Behavior: An Examination of Plant Exit and Investment Decisions," The Review of Financial Studies, Society for Financial Studies, vol. 10(3), pages 767-803.
    2. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    3. Heidi Wechtler & Evelyne Rousselet, 2012. "Research And Methods In Competitive Dynamics: Review And Perspectives," Post-Print hal-01284007, HAL.
    4. Asif Ali & Ashok Aima & Jaya Bhasin & Robert D. Hisrich, 2021. "Measuring Entrepreneurial Orientation in Developing Economies: Scale Development and Validation," Jindal Journal of Business Research, , vol. 10(2), pages 147-162, December.
    5. Rhoades, Dawna L. & Lush, Heather, 1997. "A typology of strategic alliances in the airline industry: Propositions for stability and duration," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 109-114.
    6. Peng, George Z., 2012. "FDI legitimacy and MNC subsidiary control: From legitimation to competition," Journal of International Management, Elsevier, vol. 18(2), pages 115-131.
    7. Yamakawa, Yasuhiro & Cardon, Melissa S., 2017. "How prior investments of time, money, and employee hires influence time to exit a distressed venture, and the extent to which contingency planning helps," Journal of Business Venturing, Elsevier, vol. 32(1), pages 1-17.
    8. Dimara, Efthalia & Tzelepis, Dimitris & Skuras, Dimitris, 2000. "Regional Development Incentives And Firm Survival: A Case Study Of The Greek Food Sector," ERSA conference papers ersa00p209, European Regional Science Association.
    9. Schnell, Mirko C.A., 2001. "Managerial perception of barriers to route exit: evidence from Europe's civil aviation markets," Journal of Air Transport Management, Elsevier, vol. 7(2), pages 95-102.

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