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Capability transformation through acquisitions

Capability transformation through acquisitions <jats:sec> <jats:title content-type="abstract-subheading">Purpose</jats:title> <jats:p>Firms across many industries use acquisitions as a vehicle for renewing their capabilities. Many such acquisitions fail to achieve their goals, mainly because of the trade-offs involved in managing the post-acquisition integration process. The acquisition integration process not only is an important phenomenon by itself but also offers a unique opportunity to gain insight into how firms transform their capabilities more generally. Recent strategic management literature has begun to recognize the importance of incorporating individual-level cognitive, motivational and behavioral mechanisms into firm-level explanations, although empirical studies within this vein have been scarce.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title> <jats:p>This longitudinal inductive study traces the process of capability transformation in an acquisition of a medium-size entrepreneurial firm by a larger corporation.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Findings</jats:title> <jats:p>The authors found that capability transformation involved a continuous interplay of knowledge leveraging and interest alignment mechanisms, converging around a set of practices that were considered critical for the capability. Only after firms achieved an agreement about this set of practices that knowledge leveraging efforts translated into actual performance.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Originality/value</jats:title> <jats:p>The study contributes to the literature on competitive advantage by developing a better link between the potential advantage derived from the availability of knowledge-based resources and the translation of this availability into actual firm performance. This study also advances knowledge on managing post-acquisition integration process by demonstrating which managerial skills and actions contribute to the integration capability.</jats:p> </jats:sec> http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Research: Journal of the Iberoamerican Academy of Management CrossRef

Capability transformation through acquisitions

Management Research: Journal of the Iberoamerican Academy of Management , Volume 15 (2): 148-166 – Jun 19, 2017

Capability transformation through acquisitions


Abstract

<jats:sec>
<jats:title content-type="abstract-subheading">Purpose</jats:title>
<jats:p>Firms across many industries use acquisitions as a vehicle for renewing their capabilities. Many such acquisitions fail to achieve their goals, mainly because of the trade-offs involved in managing the post-acquisition integration process. The acquisition integration process not only is an important phenomenon by itself but also offers a unique opportunity to gain insight into how firms transform their capabilities more generally. Recent strategic management literature has begun to recognize the importance of incorporating individual-level cognitive, motivational and behavioral mechanisms into firm-level explanations, although empirical studies within this vein have been scarce.</jats:p>
</jats:sec>
<jats:sec>
<jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title>
<jats:p>This longitudinal inductive study traces the process of capability transformation in an acquisition of a medium-size entrepreneurial firm by a larger corporation.</jats:p>
</jats:sec>
<jats:sec>
<jats:title content-type="abstract-subheading">Findings</jats:title>
<jats:p>The authors found that capability transformation involved a continuous interplay of knowledge leveraging and interest alignment mechanisms, converging around a set of practices that were considered critical for the capability. Only after firms achieved an agreement about this set of practices that knowledge leveraging efforts translated into actual performance.</jats:p>
</jats:sec>
<jats:sec>
<jats:title content-type="abstract-subheading">Originality/value</jats:title>
<jats:p>The study contributes to the literature on competitive advantage by developing a better link between the potential advantage derived from the availability of knowledge-based resources and the translation of this availability into actual firm performance. This study also advances knowledge on managing post-acquisition integration process by demonstrating which managerial skills and actions contribute to the integration capability.</jats:p>
</jats:sec>

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Publisher
CrossRef
ISSN
1536-5433
DOI
10.1108/mrjiam-02-2016-0647
Publisher site
See Article on Publisher Site

Abstract

<jats:sec> <jats:title content-type="abstract-subheading">Purpose</jats:title> <jats:p>Firms across many industries use acquisitions as a vehicle for renewing their capabilities. Many such acquisitions fail to achieve their goals, mainly because of the trade-offs involved in managing the post-acquisition integration process. The acquisition integration process not only is an important phenomenon by itself but also offers a unique opportunity to gain insight into how firms transform their capabilities more generally. Recent strategic management literature has begun to recognize the importance of incorporating individual-level cognitive, motivational and behavioral mechanisms into firm-level explanations, although empirical studies within this vein have been scarce.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title> <jats:p>This longitudinal inductive study traces the process of capability transformation in an acquisition of a medium-size entrepreneurial firm by a larger corporation.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Findings</jats:title> <jats:p>The authors found that capability transformation involved a continuous interplay of knowledge leveraging and interest alignment mechanisms, converging around a set of practices that were considered critical for the capability. Only after firms achieved an agreement about this set of practices that knowledge leveraging efforts translated into actual performance.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Originality/value</jats:title> <jats:p>The study contributes to the literature on competitive advantage by developing a better link between the potential advantage derived from the availability of knowledge-based resources and the translation of this availability into actual firm performance. This study also advances knowledge on managing post-acquisition integration process by demonstrating which managerial skills and actions contribute to the integration capability.</jats:p> </jats:sec>

Journal

Management Research: Journal of the Iberoamerican Academy of ManagementCrossRef

Published: Jun 19, 2017

References