Abstract

This study brings together research in corporate strategy and international business to develop an integrated theoretical framework of corporate renewal in diversified firms. We distinguish between two approaches to corporate renewal: resource exploitation in response to changes in output markets; and resource augmentation in response to changes in input markets. Although both types of renewal take advantage of a diversified firms' access to a wider range of markets, they represent fundamentally different mechanisms, making it important to distinguish between them. Overall, our study offers a conceptual bridge between parallel work in the corporate strategy and international business research streams, while highlighting important opportunities for future research for both literatures.