Towards a substantive theory of synergy

Abstract

The literature on synergy suggests that synergy is systemic and hence should be viewed in the context of processes, but that an integrative definition of this phenomenon does not exist. Against this background the article explains synergy as a concept describing the systemic processes whereby business units of diversified organisations may generate greater value through working as one system rather than working as separate entities. Through the application of grounded theory in a modernistic qualitative context and the use of a case study a substantive theory is presented for leading change towards synergy in a diversified organisation that has business units in three continents.