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Acquisition Decision-Making Processes: The Central Role of Risk

Acquisition Decision-Making Processes: The Central Role of Risk This paper builds upon the work of organizational and strategic management scholars who have conceptualized acquisitions as decision-making processes, We suggest that behavioral concepts of risk, specifically decision-maker risk perceptions and propensities, are key to understanding the process by which acquisition candidates are selected, the characteristics of pre-acquisition evaluation and negotiations, and approaches to post-acquisition integration. By drawing upon past work concerning the effects of these risk-related variables in other decision-making contexts, we develop propositions that conceptualize their impact on acquisition decision processes. Incorporation of risk as a key variable in process theories of acquisitions provides a stronger theoretical grounding for these theories, and suggests some important practical implications for managers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management SAGE

Acquisition Decision-Making Processes: The Central Role of Risk

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References (62)

Publisher
SAGE
Copyright
Copyright © by SAGE Publications
ISSN
0149-2063
eISSN
1557-1211
DOI
10.1177/014920639602200503
Publisher site
See Article on Publisher Site

Abstract

This paper builds upon the work of organizational and strategic management scholars who have conceptualized acquisitions as decision-making processes, We suggest that behavioral concepts of risk, specifically decision-maker risk perceptions and propensities, are key to understanding the process by which acquisition candidates are selected, the characteristics of pre-acquisition evaluation and negotiations, and approaches to post-acquisition integration. By drawing upon past work concerning the effects of these risk-related variables in other decision-making contexts, we develop propositions that conceptualize their impact on acquisition decision processes. Incorporation of risk as a key variable in process theories of acquisitions provides a stronger theoretical grounding for these theories, and suggests some important practical implications for managers.

Journal

Journal of ManagementSAGE

Published: Oct 1, 1996

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