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Determinants and Performance Consequences of Corporate Development and Strategy Function Size
Type
conference paper
Date Issued
2015-05-29
Author(s)
Barnbeck, Fabian
Abstract
The corporate development and strategy function (CDSF) at firms’ headquarters is critical for their strategy activities, yet we know little about its design and structure. We argue that environmental uncertainty, strategic task demands, and structural complexity affect the need for strategy resources at the corporate level and, thus, the size of the CDSF. Drawing upon a survey of strategy heads from 105 large, listed European firms as well as archival data, we find that a firm’s market fragmentation, related diversification strategy, acquisition activity, overall size, and organizational centralization are positively associated with the number of CDSF employees. We also find, however, that the function’s size does not affect a firm’s financial performance.
Language
English
Keywords
Corporate development and strategy function
strategy department
planning unit
corporate headquarters
corporate strategy
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Publisher
Strategic Management Society
Start page
7
Event Title
2015 SMS Strategic Management Society Special Conference
Event Location
St.Gallen
Event Date
28.-20.05.2015
Subject(s)
Division(s)
Eprints ID
244872