Selling without selling out : Growth dilemma of sustainability-driven firms
ISBN
978-0-9742304-3-6
Type
conference paper
Date Issued
2011-06-26
Author(s)
Nazarkina, Liudmila
Abstract
Drawing on resource dependence and real options theories, I propose a theoretical model explaining the choice made by many sustainability-driven firms to finance their growth by selling equity to a strategic investor (competitor) rather than to a financial investor (venture capital firm). More specifically, I suggest that resource complementarity, capital requirements, competitive threat and demand uncertainty predict the choice of an investment option. In addition, using insights from the mergers and acquisitions literature, I propose that selling a firm does not lead to ‘selling out' if the acquired firm retains a high degree of autonomy.
Language
English
Keywords
Entrepreneurial growth
sustainability-driven firms
sustainability entrepreneurship
venture capital
mergers & acquisitions
resource dependence
real options
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Managing in a Global Economy XIV: Global Web of Knowledge
Publisher
EAOM Eastern Academy of Management International
Publisher place
USA
Event Title
Eastern Academy of Management International Conference
Event Location
Bangalore, India
Subject(s)
Eprints ID
171478