Foreign divestment decisions: A theoretical framework

Abstract

Foreign Divestment (FD) over the last few decades have been generally viewed as a sign of failure or negative whether it is a voluntary business strategy or a last resort for an international company. The decision making process and execution of Foreign Divestment has been an increasing phenomenon which has been noted by researchers over the years as a very complicated decision, however a holistic theory has yet to be developed to address this issue. In this paper the author seeks to give insight based on Mintzberg and Walters 1985 "Of deliberate and emergent strategies" framework and organization theories which are used as the foundation of a model of FD decision and leadership. Subjective insight for the closest related organization theories are used to provide a framework from which divestment decisions and strategies are created.