The three laws of business combinations: how to create value by remixing assets
Abstract
Purpose
The author defines and discusses the three laws of business combinations that are essential to a profitable use of resources.
Design/methodology/approach
The author shows how applying these laws is necessary for success.
Findings
All business combinations must have the potential to create joint value, must be governed to realize this value, and must share value in a way that provides a reward to each party’s investment
Practical implications
In remix strategy, the fundamental unit of analysis is the combination of resources that yields value. That combination competes with other combinations. Some combinations will gain advantage over others because they encompass just the right resources; others will gain advantage because they manage their collective resources better than others do.
Originality/value
The author’s insight is that instead seeing competition as a battle of firm vs. firm, practitioners need to understand how bundles of resources compete, regardless of whether they are organized as firms.
Keywords
Acknowledgements
© 2015. Harvard Business Publishing Corporation. All rights reserved.
Citation
Gomes-Casseres, B. (2015), "The three laws of business combinations: how to create value by remixing assets", Strategy & Leadership, Vol. 43 No. 5, pp. 18-23. https://doi.org/10.1108/SL-06-2015-0053
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Authors