Full and Partitioned Human Capital Redeployment and Business Unit Exit

Research output: Chapter/Conference proceedingConference proceedingAcademicpeer-review


Multi-business firms redeploy resources, specifically human capital, internally to manage the establishment and termination of business units. Prior work has not investigated different human capital redeployment (HCR) strategies and their outcomes. We identify three generic HCR strategies and explore their respective impact on unit exit. We find that HCR in general decreases the likelihood of unit exit. However, full HCR - employees work full-time at the receiving unit - and partitioned HCR in which the sending parent remains the main employer drive these results. Partitioned HCR in which the receiving unit becomes the main employer does not affect exit. We attribute the differing impact on exit to strategies’ idiosyncratic capacity availability, adjustment costs specifically multiple jobholding costs, and interfirm ties.
Original languageEnglish
Title of host publicationAcademy of Management Proceedings
PublisherAcademy of Management
Publication statusPublished - 2023

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