Introduction

Abstract

For a company today, a convincing firm strategy as such is not a sufficient precondition for success. Turning strategy into reality is itself increasingly considered to be a source of competitive advantage (Barney, 2001; Govindarajan, 1988; Priem, 2001; Tsai & Ghoshal, 1998). Successfully driving the strategy realization process is particularly challenging for multibusiness firms as their growth and profitability potential lies not only vertically within one business unit but in collaboration and coordination activities across businesses as well (Goold, Campbell, & Alexander, 1994). It is increasingly recognized today that realizing cross-business value creation is the rationale for the existence of a diversified firm (Goold & Campbell, 1998a, 2000). A multibusiness firm which is not capable of realizing value creation across its businesses will face increasing pressure from financial investors to abandon one of its businesses (Müller- Stewens & Knoll, 2005a).