The author investigates whether portfolio restructuring under-taken in response to changes in product-market uncertainty has implications for financial performance. A model that integrates information-processing and resource-based theories was applied to data from a panel of 168 Fortune 500 companies. Analyses show that product-market uncertainty is associated with two different types of restructuring strategies, which represent different theoretical approaches to portfolio restructuring. The results further show that portfolio restructuring actions influenced performance, and indicate when each restructuring strategy should be used to achieve the highest financial performance. Implications of these results for theory development are discussed.
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