Ponente: Profesor Timothy Folta, Universidad de Connecticut (USA).

Título: «Market Exit and the Potential for Resource Redeployment: Evidence from the Global Retail Sector».

ABSTRACT: This study elaborates on the core set of necessary and sufficient conditions for resource redeployment. Our study proposes that a necessary condition is that internal adjustment costs are less than external transaction costs and a sufficient condition is that there are positive inducements net adjustment costs. We examine how this core set of necessary and sufficient conditions can explain market exit decisions and the growth in non-scale free resources of portfolio businesses upon sibling exit. We also examine how capacity constraints can influence the decision to redeploy resources across portfolio businesses upon sibling exit. Using a unique panel dataset on 3,082 chains from the global retail sector and their potential to redeploy physical stores across sibling chains, we find evidence consistent with our theoretical framework.