Foreign subsidiary divestment decision process: The pharmaceutical industry experience

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2014

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Forum Empresarial



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Divestment

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Luis M. Baquero et al., « Foreign subsidiary divestment decision process: The pharmaceutical industry experience », Forum Empresarial, ID : 10670/1.k5it34


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"This paper aims to examine the decision process for the divestment of foreign subsidiaries, from the perspective of managers of pharmaceutical manufacturing subsidiaries located in Puerto Rico. The analysis provides evidence that relations with the parent firms were cooperative and no obstructive, and that foreign management assumed overall control during the implementation of disinvestment decisions; however, there was insuficient evidence to demonstrate involvement as initiator or coordinator of the divestment process or to show they were kept informed before the decision to divest was made. Finally, it showed that the increase in the expiry of patents did not increase participation of executives in the evaluation of their plants."

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