Laurence Capron analyzes corporate development's build, borrow and buy options
Purpose ‐ This paper aims to present an interview with researcher and author Laurence Capron, in which she warns that too few companies consider the full range of "build, borrow and buy" options in their corporate development efforts, while the odds for success significantly
favor those that do, and do it in a disciplined and systematic way.
Design/methodology/approach ‐ The interview describes how over-reliance on internal growth (build) can make a company slow to acquire the new resources it needs to survive in a fast moving environment.
Making too many acquisitions (buy) within a short period of time can lead to organizational incoherence and fragmentation, while relying too heavily on licenses, contracts and alliances (borrow) can make a business vulnerable to its partners' shifting priorities.
Findings ‐
The paper reveals that choosing carefully among different growth modes, and developing the right blend of options, will help firms take speedy advantage of emerging opportunities, while minimizing the cost of doing so.
Practical implications ‐ Many companies overestimate
the relevance of their internal resources.
Originality/value ‐ The paper explains why CEOs and their top management teams need to learn how to identify the right ways to grow their company and how they can build the discipline within their company to choose and follow
those multiple paths to growth.
Keywords: Acquisitions and mergers; Build-borrow-buy initiatives portfolio; Contracts; Corporate development options; Corporate growth; Growth strategies; Internal development; Resource Pathways framework; Selection Capability Cycle; Strategic alliances
Document Type: Research Article
Publication date: 01 March 2013
- Previously published as The Antidote
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