Revisiting Causes of Firm Exit for Divestiture Spin-Off in the Last Five Years: A Systematic Literature Review

Dadi Adriana; Hartoyo Hartoyo; Rizal Syarief; Elisa Anggraeni

doi:10.34306/att.v6i3.447

Authors

Dadi Adriana IPB University https://orcid.org/0009-0004-4973-1514
Hartoyo Hartoyo IPB University https://orcid.org/0000-0003-1245-7342
Rizal Syarief IPB University https://orcid.org/0000-0001-7401-3996
Elisa Anggraeni IPB University https://orcid.org/0000-0002-3018-4627

DOI:

https://doi.org/10.34306/att.v6i3.447

Keywords:

Firm Exit, Divestiture, Spin-Off, Firm Management

Abstract

This study revisits and analyzes the causes leading to firm exit in divestiture spin-offs over the past five years, aiming to consolidate findings from recent literature and uncover evolving trends. Using a systematic literature review of Scopus publications from 2019 to 2024 and employing the PRISMA methodology, this study analyzed a final sample of 97 journal articles to examine the key factors influencing divestiture spin-offs. The results identify four primary causes for divestiture spin-offs: market periphery and overlap, asset redeployment, unprofitable resource utilization, and the critical timing decision between redeployment and divestiture. These insights reveal a significant shift in research focus, offering valuable knowledge for executives and management to move beyond traditional views and understand the underlying causes in a more nuanced way. This study provides essential guidance for executives, firm management, and policymakers, supporting informed decision-making in business unit divestitures and contributing to a more sustainable economic cycle. The originality and value of this research lie in its comprehensive identification of the causes behind firm exit in divestiture spin-offs, laying a robust foundation for future research and practical applications.

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