A temporal perspective of corporate M&A and alliance portfolios

Abstract

How and whether the rhythm, synchronization and sequence of firms' M&A and alliance activity over time impact firm performance is our core question. We seek to advance a temporal lens in the M&A and alliance discourse by explicitly incorporating time-associated theories, constructs and methods. A temporal view of M&A and alliance activity requires strategists to study fundamental questions related to when and under what conditions firms should accelerate, slow down and coordinate their M&A and alliance initiatives, whether firms' trajectory of M&A and alliance have discernible and distinctive patterns over time, and whether these initiatives demonstrate a temporal pattern that becomes an integrated part within firms' M&A and alliance routines that create a time-based source of competitive advantage. Using a sample of 57 small to medium-size firms in the global specialized pharmaceutical industry and their M&A and alliance activities for 19 years we find support for our temporal-based hypotheses.

Citation

Prescott, J.E. and (Stone) Shi, W. (2008), "A temporal perspective of corporate M&A and alliance portfolios", Cooper, C.L. and Finkelstein, S. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 5-27. https://doi.org/10.1016/S1479-361X(08)07002-6