Corporate and Divisional Manager Involvement in Divestitures – a Contingent Analysis*

Abstract

In prior research, insights into the degree and type of corporate and divisional level manager involvement in divestiture processes have remained sparse. Based on extant empirical research on managerial processes in divestitures and a review of literature on the antecedents of divestitures, this paper identifies a set of internal and external contingencies which potentially influence the degree of corporate and divisional level manager involvement in divestitures. Findings from an in‐depth case study of four parallel divestitures by a major European technology company (TechCo) in the late 1990s indicate which of these contingencies seem to have a relevant influence on the involvement of the different managerial levels in divestiture processes. The contingent approach contributes to theory by providing explanations for existing, conflicting empirical evidence concerning the degree and type of corporate and divisional level manager involvement in divestiture processes. The second major theoretical contribution of the paper lies in the identification and description of the type of managerial actions these different contingencies bring about.

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