Operationalizing Parenting Advantage
After its introduction in the mid-1990s, the concept of parenting advantage was quickly adopted by many standard textbooks on strategic management. Empirical studies revealed that the concept is considered highly relevant for strategy formulation and portfolio management at corporate level; however, its broader application has not lived up to expectations. This paper assumes that this is due to two major limitations of the original concept: firstly, it neglects the indirect compositional effects of the portfolio that are not due to active involvement of the corporate parent, and secondly, the concept has not been sufficiently operationalized to the level of specific value-added activities.
KeywordsCash Flow Business Unit Parenting Strategy Corporate Practice Strategic Asset
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