The Creative Destruction of Management Buy-Outs
Hayle, David N (2009) The Creative Destruction of Management Buy-Outs. [Dissertation (University of Nottingham only)] (Unpublished)
So, as we move forward post MBO without the original Entrepreneur at the helm it is acknowledged that we will face a great many challenges as we continue along the path leading towards longevity and continued success, for in essence we want to go from ‘Good to Great’ and become ‘Built to Last’. In common with other organisations in the same situation, to address these challenges we need to become both wily and innovative in a manner that we haven’t been in the past. The previous owner/leader has taken a substantial sum of money off the table (as a result of the MBO) and going forward is likely to be less driven than he was previously, spending less time in the business thereby creating somewhat of a void. In filling this void does an MBO transaction provide the organisation with a firm level version of the ‘creative destruction’ espoused by Schumpeter as being so essential to the development of new radical innovation? Are the management teams that led the MBO's the ‘New Men’ that Schumpeter noted were a prequel to innovation?
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