Re‐examining mimetic isomorphism: Similarity in mergers and acquisitions in the financial service industry

Abstract

Purpose

In this study the aim is to analyze multiple decisions in mergers and acquisitions (M&As) strategy to verify whether isomorphism appears in these decisions when a firm imitates others and to determine under what conditions the link between imitation and the degree of similarity in M&As is weakened.

Design/methodology/approach

With a sample of 4,881 completed M&As in the financial service industry, the authors adopt the generalized multivariate regression model to test the hypothesized effects of the independent variables on the degree of similarity in M&As.

Findings

Support is found for the mimetic isomorphism argument. Furthermore, firm experience and local market segmentation weaken the positive relationship between imitation and the degree of similarity in M&As.

Originality/value

This study enhances the understanding of mimetic isomorphism by not only verifying the relationship between imitation and isomorphism, but also integrating the role of organizational active agency (firm experience) and the extent to which local market competitors affect imitation and isomorphism within the industry as a whole.

Citation

Yang, M. and Hyland, M. (2012), "Re‐examining mimetic isomorphism: Similarity in mergers and acquisitions in the financial service industry", Management Decision, Vol. 50 No. 6, pp. 1076-1095. https://doi.org/10.1108/00251741211238346