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J. Kay Keels, Department of Management, College of Business Administration,
Emory University, Atlanta, Georgia
Garry D. Bruton, Department of Management, M. J. Neeley School of Business,
Texas Christian University, Fort Worth, Texas 76129
Elton L. Scifres, Department of Management, College of Business,
Stephen F. Austin State University, Nacogdoches, Texas 75962-9070

Abstract

Buyouts have become a widely accepted method of restructuring, but the motivation for such activities has not been clearly established. The motivation for managers has typically been assumed to be either a form of “corporate entrepreneurship” or based on “financial gains” to the managers. Researchers commonly do not recognize that different motivations may be present in different settings; instead, they assume the presence of one motivation or the other. This study contrasts these two motivations ascribed to buyouts and finds that distinct motivations are present in different situations. In turn these distinctive motivations lead to different strategic approaches to restructuring and different performance patterns.

 Corporate Entrepreneurship vs. Financially Driven Buyouts, Indications for Restructuring and Performance