Dr Timo Sohl, Pompeu Fabra University

This study proposes that the potential for cross-business resource redeployment can attenuate the negative effect of market frictions on a focal business’ creation of establishments because it allows multi-business firms to avoid external transaction costs, leading to more experimentation and riskier investments as compared to single-business firms. Because types of non-financial resources may differ in their adjustment costs, the research argues that the incentive to invest more in the presence of market frictions should depend on the degree of business relatedness required for intra-firm transactions to be more efficient than market transactions. While internal markets for establishments may require a high degree of business relatedness, employees may be more readily transferable across less related businesses. By exploring the impact of within-country variation in construction and labour market frictions on the establishment growth of multi-business relative to single-business chains, the difference-in-differences analysis provides evidence supportive of the arguments.

Speaker bio

Timo Sohl is an Assistant Professor of Strategy at Pompeu Fabra University (UPF) and Affiliated Professor at the Barcelona Graduate School of Economics. His research focuses on corporate diversification and resource allocation in multi-business firms. He and his co-authors won the Best Corporate Strategy IG Proposal Award from the Strategic Management Society in 2018 and a Distinguished Paper Award of the Strategic Management Division (STR) from the Academy of Management in 2014. Timo received his PhD in Management from the University of St Gallen. Before joining UPF, he was a post-doctoral fellow at IESE Business School and a visiting fellow at Texas A&M University.

Address

Trumpington St
Cambridge
CambridgeshireCB2 1AG
United Kingdom

Date & time

Date: 30 November 2018
Start Time: 13:30
End Time: 15:00

Audience

Open to: Members of the University of Cambridge

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Event location


Trumpington St
Cambridge
CambridgeshireCB2 1AG
United Kingdom

Event timings

Date: 30 November 2018
Start Time: 13:30
End Time: 15:00