Ending-competence in business closure

Business closure and ending-competence are highly relevant concepts in a globalizing world economy where structural change is common. However, ending-competence in business closure situations is a rarely studied phenomenon, and prior theoretical development is modest. In this paper a conceptual model of ending-competence in business closure is developed. A case study examination of a business closure, involving a car manufacturing plant owned by Mitsubishi Motors Australia Ltd., allows further development of the model. The model consists of four elements: (1) earlier experiences of ending; (2) an understanding of different types of commitment; (3) the interdependence between parties; and (4) coordinating and timing the ending. The model illustrates the different roles played by upper and operational management during a closure process. An understanding of ending-competence is important to managers of large firms and to educators of future managers.

Research Highlights► Business closure: experience, commitments, interdependencies, timing, coordinating. ► Suggests ways to manage timing of different business closure aspects. ► Improves CEOs and managers understanding of an effective business closure. ► Records a business closure of a car plant by Mitsubishi Motors Australia.