IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v36y2002i5p515-529.html
   My bibliography  Save this article

The Limits to Portfolio Restructuring: Lessons from Regional Consolidation in the US Department Store Industry

Author

Listed:
  • Steve Wood

Abstract

The relationship between merger and acquisition activity and the making of competitive space remains an underemphasized theme within contemporary economic geography. This paper seeks to add to this debate through a case study of the regional consolidation strategies of US department store firms during the 1990s. It seeks to establish lessons regarding the importance of competitive space, synergy and due diligence in the analysis of potential consolidation targets and how neglect of these factors is likely to result in failure of the constituent firms. Au sein le geographie economique, le rapport entre les activites de fusion et d'acquisition et la creation d'un espace competitif reste une question a laquelle on ne donne pas assez d'importance. Cet article cherche a contribuer a ce debat par moyen d'une etude de cas des strategies de consolidation regionales des grands magasins aux Etats-Unis pendant les annees 1990. Il cherche a en tirer des lecons quant a l'importance de l'espace competitif, de la synergie et de la diligence normale dans l'analyse des cibles de consolidation eventuelles, et comment ne pas faire attention a ces facteurs risque de finir par l'echec des entreprises constituantes. Die Beziehung zwischen Fusion und Erwerbesinn, und der Schaffung von Wettbewerbsraum ist ein immer noch wenig behandeltes Thema der modernen Wirtschaftsgeographie. Dieser Aufsatz versucht, zu der Debatte beizutragen, indem er den Fall regionaler Zusammenlegungsstrategien von Warenhausfirmen in den Vereinigten Staaten wahrend der neunziger Jahre darstellt. Er versucht, daraus Lehren fur die Bedeutung von Wettbewerbsraten, Synergie und den notigen Fleiss zu ziehen, und zu zeigen, wie Vernachlassigung dieser Faktoren durchaus zum Scheitern der einzelnen Teilfirmen fuhren kann.

Suggested Citation

  • Steve Wood, 2002. "The Limits to Portfolio Restructuring: Lessons from Regional Consolidation in the US Department Store Industry," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 515-529.
    • Handle: RePEc:taf:regstd:v:36:y:2002:i:5:p:515-529
    DOI: 10.1080/00343400220137128
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400220137128
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343400220137128?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Donald D. Bergh, 1997. "Predicting divestiture of unrelated acquisitions: an integrative model of ex ante conditions," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 715-731, October.
    2. Michael C. Jensen, 2010. "Active Investors, LBOs, and the Privatization of Bankruptcy," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 77-85, January.
    3. Morck, Randall & Shleifer, Andrei & Vishny, Robert W, 1990. "Do Managerial Objectives Drive Bad Acquisitions?," Journal of Finance, American Finance Association, vol. 45(1), pages 31-48, March.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Gillan, Stuart L. & Kensinger, John W. & Martin, John D., 2000. "Value creation and corporate diversification: the case of Sears, Roebuck & Co," Journal of Financial Economics, Elsevier, vol. 55(1), pages 103-137, January.
    6. Charles W. L. Hill & Michael A. Hitt & Robert E. Hoskisson, 1992. "Cooperative Versus Competitive Structures in Related and Unrelated Diversified Firms," Organization Science, INFORMS, vol. 3(4), pages 501-521, November.
    7. Sea Jin Chang & Harbir Singh, 1999. "The impact of modes of entry and resource fit on modes of exit by multibusiness firms," Strategic Management Journal, Wiley Blackwell, vol. 20(11), pages 1019-1035, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Neil Wrigley & Andrew Currah & Steve Wood, 2003. "Investment Bank Analysts and Knowledge in Economic Geography," Environment and Planning A, , vol. 35(3), pages 381-387, March.
    2. Angélica María Sánchez-Riofrío & Luis Ángel Guerras-Martín & Francisco Javier Forcadell, 2015. "Business portfolio restructuring: a comprehensive bibliometric review," Scientometrics, Springer;Akadémiai Kiadó, vol. 102(3), pages 1921-1950, March.
    3. Steve Wood & Jonathan Reynolds, 2014. "Establishing Territorial Embeddedness within Retail Transnational Corporation (TNC) Expansion: The Contribution of Store Development Departments," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1371-1390, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angélica María Sánchez-Riofrío & Luis Ángel Guerras-Martín & Francisco Javier Forcadell, 2015. "Business portfolio restructuring: a comprehensive bibliometric review," Scientometrics, Springer;Akadémiai Kiadó, vol. 102(3), pages 1921-1950, March.
    2. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    3. Nan Zhou, 2018. "Hybrid State-Owned Enterprises and Internationalization: Evidence from Emerging Market Multinationals," Management International Review, Springer, vol. 58(4), pages 605-631, August.
    4. Jianfeng Wu & Dean Xu & Phillip Phan, 2011. "The effects of ownership concentration and corporate debt on corporate divestitures in Chinese listed firms," Asia Pacific Journal of Management, Springer, vol. 28(1), pages 95-114, March.
    5. Daniel, Francis & Lohrke, Franz T. & Fornaciari, Charles J. & Turner, R. Jr., 2004. "Slack resources and firm performance: a meta-analysis," Journal of Business Research, Elsevier, vol. 57(6), pages 565-574, June.
    6. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    7. Sergio Destefanis & Vania Sena, 2007. "Patterns of corporate governance and technical efficiency in Italian manufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 27-40.
    8. Benoît Pigé, 1998. "CEOs entrenchment and shareholders' wealth [Enracinement des dirigeants et richesse des actionnaires]," Post-Print hal-02175777, HAL.
    9. Isabelle Le Breton–Miller & Danny Miller, 2006. "Why Do Some Family Businesses Out–Compete? Governance, Long–Term Orientations, and Sustainable Capability," Entrepreneurship Theory and Practice, , vol. 30(6), pages 731-746, November.
    10. Matthias Kiefer & Edward Jones & Andrew Adams, 2016. "Principals, Agents and Incomplete Contracts: Are Surrender of Control and Renegotiation the Solution?," CFI Discussion Papers 1603, Centre for Finance and Investment, Heriot Watt University.
    11. Wang, Ke, 2023. "Essays in corporate risk," Other publications TiSEM 8c076f0d-2c02-40a4-b6d7-e, Tilburg University, School of Economics and Management.
    12. Sercu, Piet & Van Hulle, Cynthia, 1995. "Financing instruments, security design, and the efficiency of takeovers: A note," International Review of Law and Economics, Elsevier, vol. 15(4), pages 373-393, December.
    13. Ayman Hassan Bazhair & Mohammed Naif Alshareef, 2022. "Dynamic relationship between ownership structure and financial performance: a Saudi experience," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2098636-209, December.
    14. Paugam, Luc, 2011. "Valorisation et reporting du goodwill : enjeux théoriques et empiriques," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/8007 edited by Casta, Jean-François.
    15. Luc Renneboog & Peter G. Szilagyi, 2008. "Corporate Restructuring and Bondholder Wealth," European Financial Management, European Financial Management Association, vol. 14(4), pages 792-819, September.
    16. Kimberly Gleason & Anita Pennathur & Joan Wiggenhorn, 2014. "Acquisitions of family owned firms: boon or bust?," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 38(2), pages 269-286, April.
    17. Paul Gompers & Joy Ishii & Andrew Metrick, 2003. "Corporate Governance and Equity Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 107-156.
    18. Carola Frydman & Dirk Jenter, 2010. "CEO Compensation," Annual Review of Financial Economics, Annual Reviews, vol. 2(1), pages 75-102, December.
    19. Wi Saeng Kim & Esmeralda Lyn & Tae‐Jun Park & Edward Zychowicz, 2005. "The Wealth Effects of Capital Investment Decisions: An Empirical Comparison of Korean Chaebol and Non‐Chaebol Firms," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(5‐6), pages 945-971, June.
    20. Wagner, Alexander F. & Filipović, Zoran, 2019. "The Intangibles Song in Takeover Announcements: Good Tempo, Hollow Tune," CEPR Discussion Papers 13560, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:36:y:2002:i:5:p:515-529. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.