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Article
Publication date: 3 August 2022

Nadia Hanif, Jianfeng Wu and Kenneth A. Grant

The purpose of this study is to test a model for cross-border technological acquisitions (CBTAs) focusing on the level of ownership acquired in the target firm and the acquiring

Abstract

Purpose

The purpose of this study is to test a model for cross-border technological acquisitions (CBTAs) focusing on the level of ownership acquired in the target firm and the acquiring firm's post-acquisition innovation performance (PAIP), with the degree of integration as a mediator, based on the dynamic capability perspective of the resource-based view. This study further concludes the role of the country-of-origin effect (COE) (when emerging economies' acquiring firms purchase technological resources from developed economies' target firms) on the success of the acquiring firms in CBTAs.

Design/methodology/approach

Data on CBTAs initiated by 542 acquiring firms was quantified from four high technology industries from 1995 to 2015 for the empirical investigation of the research hypotheses. Hierarchical fixed year effect negative binomial regression technique was used to analyze the proposed model for the success of CBTAs.

Findings

The analysis of the CBTAs confirmed that acquiring firms who opt for a higher level of acquired ownership strategy increase the degree of integration of the target firm's technological resource stock. The level of acquired ownership improves the PAIP of the acquiring firms; however, the degree of integration positively accelerates the relationship between the acquired ownership and the PAIP. Considering the COE, acquiring firms that initiated CBTAs from emerging economies to purchase technological resources from developed economies' targets have firm-specific technological capability holes to execute the integration, which negatively impacts the emerging economies acquiring firm's PAIP.

Originality/value

This study contributes to the CBTAs literature by exploring the enabling role of the degree of integration between the level of acquired ownership and the PAIP of the acquiring firms. Further, this study put forward empirics on the COE of the acquiring firms for their integrative capability to integrate the target firm's resource stock and subsequent innovation performance.

Details

Review of International Business and Strategy, vol. 33 no. 3
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 7 April 2015

Xianming Wu, Nathaniel C. Lupton and Yuping Du

The purpose of this paper is to investigates how organizational learning, absorptive capacity, cultural integration, specialization of the acquired firm and characteristics of…

1226

Abstract

Purpose

The purpose of this paper is to investigates how organizational learning, absorptive capacity, cultural integration, specialization of the acquired firm and characteristics of transferred knowledge impact innovation performance subsequent to overseas acquisitions.

Design/methodology/approach

Survey responses from 222 Chinese multinational enterprises engaged in overseas acquisitions.

Findings

Differences between acquiring and acquired firms’ capabilities, while having a positive direct influence, suppress the positive impact of organizational learning and absorptive capacity, suggesting that multinationals require some basic level of capabilities to appropriate value from overseas acquisitions.

Research limitations/implications

This paper investigates the impact of knowledge-seeking overseas acquisition of Chinese multinationals on innovation performance, as this appears to be the primary motive for making such acquisitions.

Practical implications

Knowledge-seeking overseas acquisition should be based upon the absorptive capacity of the acquiring firm and complementarity between both firms. In knowledge-seeking overseas acquisitions, establishing an effective organizational learning mechanism is necessary for improving innovation performance.

Originality/value

This paper reports on the behaviour and innovation performance of Chinese multinationals through analysis of primary data.

Details

Chinese Management Studies, vol. 9 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 13 July 2015

Phillip N Smith, Caitlin Wolford-Clevenger, Candice N Selwyn, Erin Poindexter, William Lechner, DeMond M. Grant and Kelly C Cukrowicz

The interpersonal theory of suicide proposes that an individual must acquire the capability for suicide to carry out a near-lethal or lethal suicide attempt. This capability

Abstract

Purpose

The interpersonal theory of suicide proposes that an individual must acquire the capability for suicide to carry out a near-lethal or lethal suicide attempt. This capability develops via habituation in response to painful and provocative life events. Some individuals might be more vulnerable to developing the capability for suicide because they habituate more quickly to stimuli. The purpose of this paper is to examine the relations between the rate of physiological habituation and acquired capability, proxies for acquired capability, and acute risk factors for suicide.

Design/methodology/approach

Depressed, suicidal individuals completed self-report assessments and a startle reflex task assessing the rate or speed of physiological habituation in response to repeated bursts of white noise.

Findings

Slower habituation was associated with hopelessness and negative stressors. The rate of habituation was not associated with acquired capability.

Originality/value

The current study informs the understanding of how physiological habituation is related to suicide risk factors.

Details

Journal of Aggression, Conflict and Peace Research, vol. 7 no. 3
Type: Research Article
ISSN: 1759-6599

Keywords

Book part
Publication date: 6 May 2004

Duncan Angwin

Managing Executives occupy a pivotal role in the acquisition process. It is virtually inconceivable that major Merger and Acquisitions (M&As) could proceed without their personal…

Abstract

Managing Executives occupy a pivotal role in the acquisition process. It is virtually inconceivable that major Merger and Acquisitions (M&As) could proceed without their personal sponsorship (Hayward & Hambrick, 1997). They are central to the negotiation and signing for such deals and it is these negotiations that raise questions over how the target company should be run post-acquisition, how it should be configured to fit within the newly expanded group and what sort of strategy may be appropriate for the future. Managing Executives embody their firm’s strategies and so are intimately connected with these issues of organisational fit and strategic rational. With negotiations focussed upon the future of their businesses and their personal places in corporate history, these contests can be very dramatic. The high stakes are evident in the substantial levels of acquired Managing Executive departure post-acquisition. Whilst we can observe that many acquired Managing Executives subsequently leave the enlarged firm, little evidence to date answers the question of why they have been retained or replaced?

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84950-264-1

Article
Publication date: 13 July 2015

Tara C Holaday and Amy M Brausch

The purpose of this paper is to examine the role of suicide-related mental imagery in suicidal behavior. It was hypothesized that greater frequency and vividness of…

Abstract

Purpose

The purpose of this paper is to examine the role of suicide-related mental imagery in suicidal behavior. It was hypothesized that greater frequency and vividness of suicide-related imagery would be associated with more suicidal behaviors, and acquired capability for suicide was expected to mediate this relationship. Hypotheses were tested by surveying 237 undergraduate students (59 percent female; mean age=20) who completed self-report measures that assessed suicidal cognitions, acquired capability for suicide, and history of self-harm behaviors.

Design/methodology/approach

Hypotheses were tested by surveying 237 undergraduate students (59 percent female; mean age=20) who completed self-report measures that assessed suicidal cognitions, acquired capability for suicide, and history of self-harm behaviors.

Findings

Results suggested that frequency and vividness of suicide-related imagery were positively correlated with suicidality. Acquired capability was not related to study variables; thus additional mediational analysis was unwarranted.

Originality/value

Few studies have examined suicidal imagery and how it relates to actual self-harm behavior. The current study provides an exploratory view of features of imagery related to suicidal thoughts; findings imply that understanding mental imagery may play an important role in clinical risk assessment and treatment for suicidality.

Details

Journal of Aggression, Conflict and Peace Research, vol. 7 no. 3
Type: Research Article
ISSN: 1759-6599

Keywords

Open Access
Article
Publication date: 6 April 2022

Güldem Karamustafa-Köse, Susan C. Schneider and Jeff D. Davis

Despite best intentions, mergers and acquisitions often do not live up to the expectations for performance. This study examined how the salience of multiple identities creates…

1562

Abstract

Purpose

Despite best intentions, mergers and acquisitions often do not live up to the expectations for performance. This study examined how the salience of multiple identities creates dynamics in postmerger integration processes and how these dynamics influence the acquisition of the target's capabilities.

Design/methodology/approach

The authors conducted an in-depth case study of a large American consumer goods multinational corporation's acquisition of a family-owned German beauty business and examined responses to decisions and events during the postmerger integration process.

Findings

The results show how and why efforts to acquire unique target capabilities might not deliver the hoped-for results. The authors discovered multiple identities that became salient during the postmerger integration process which subsequently influenced interpretations and reactions to decisions and events and which created intergroup dynamics. The authors also noted the role of language in making these identities salient. Such dynamics pose challenges to managing the postmerger integration process and to acquiring sought after capabilities.

Originality/value

This study reveals how different identities become salient in the interpretation of particular events and decisions, resulting in emotional and behavioral reactions and intergroup dynamics. Furthermore, it uncovers the role of language in making identities salient. This study offers further insight into identity dynamics when the capability of the target firm is the motive of the acquisition.

Details

Journal of Organizational Change Management, vol. 35 no. 8
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 19 August 2021

Nadia Hanif, Jianfeng Wu and Ahmad Bilal Babar

The primary purpose of this study is to explore the impact of acquired ownership in Chinese target firm on the innovation performance of developed economies (DE) acquiring firms…

Abstract

Purpose

The primary purpose of this study is to explore the impact of acquired ownership in Chinese target firm on the innovation performance of developed economies (DE) acquiring firms. Furthermore, the study aims to empirically investigate the moderating influence of institutional distance between two parties’ home countries.

Design/methodology/approach

For the empirical investigation of the hypotheses, the authors identified cross-border technological acquisitions from the Securities Data Company between 1995 and 2015. A hierarchical negative binomial regression technique was used to analyze 177 technological acquisitions completed by DE acquiring firms in China.

Findings

Analysis of technological acquisition deals confirmed that acquired ownership undertaken in the Chinese target firms increases the DE acquiring firms’ post-acquisition innovation performance. The authors found that DE acquiring firms underperform in innovation in institutionally distant host countries.

Originality/value

This study contributes to the international business literature by explaining the importance of acquired ownership undertaken in the Chinese target firms for the DE acquiring firm’s innovation performance. Second, institutional theory defines how institutional uncertainty in terms of distance modifies the positive impact of acquired ownership on acquiring firm’s innovation performance.

Details

Chinese Management Studies, vol. 16 no. 5
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 25 September 2018

Zhe Sun

The purpose of this paper is to unpack the black box of post-merger and acquisition (M&A) integration of reverse M&A by Chinese multinational enterprises (MNEs).

Abstract

Purpose

The purpose of this paper is to unpack the black box of post-merger and acquisition (M&A) integration of reverse M&A by Chinese multinational enterprises (MNEs).

Design/methodology/approach

This research adopts multiple cases of Chinese reverse M&A. Data are collected using the approaches of in-depth interviews, storytelling and narratives.

Findings

This research identifies various antecedents underlying Chinese post-M&A integration, such as asymmetries in resources, capabilities, vision and status between Chinese MNEs and acquired firms. The post-M&A integration process of Chinese reverse M&A consists of a top-down effortless integration initiated by Chinese MNEs with both benefits and problems, and a bottom-up reverse integration conducted by acquired firms.

Originality/value

By linking the pre-M&A phase and the post-M&A phase, this research builds a new model of post-M&A integration of Chinese reverse M&A from an indigenous Wu Wei paradigm. The new model counterpoises extant literature, shifting from the task and efficiency-focussed view to the people and harmony-focussed view.

Details

Chinese Management Studies, vol. 12 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 9 March 2015

Caleb Muyiwa Adelowo, Matthew Olugbenga Ilori, Willie Owolabi Siyanbola and Billy A Oluwale

The ability of tenant firms to survive after incubation is dependent on the relevant capabilities they acquired during the incubation process. Several studies have established the…

2340

Abstract

Purpose

The ability of tenant firms to survive after incubation is dependent on the relevant capabilities they acquired during the incubation process. Several studies have established the critical roles of incubation in fostering entrepreneurship and innovation at local, national and regional levels but the processes and mechanisms of technological learning and the capability building of the tenants has received much less attention. In response to the situation, the purpose of this paper is to assess various technological learning mechanisms through which tenant firms in the incubation system in Nigeria acquired the relevant capabilities (both technological and non-technological) that will sustain them after graduation.

Design/methodology/approach

The information was gathered through a preliminary survey and questionnaires were administered to elicit information from the tenant firms and the incubator managers. Data collected were analysed and presented using descriptive statistics.

Findings

The internal learning mechanisms of the tenant firms were found to be fair as firms possessed good internal capabilities that helped to absorb and adapt foreign technologies to suit their individual production needs and this was demonstrated by the quality of personnel employed by the tenant firms. The study revealed poor interaction between the tenants and knowledge institutions and training programmes and facilities also played significant roles in technological capability acquisition of tenants firms. The main factors that ranked highly and influenced technological learning among the firms included the need for product improvement, the need to increase production, turnover and profit, the need to reduce production costs and compete well after graduation, while the need to enter foreign market and commercialise technology ranked average with regards to success in technological learning.

Research limitations/implications

The results of the study may not be generalised because of limited sample.

Practical implications

The study concluded that the technological learning capabilities of the firms could be better enhanced with adequate training and training facilities, robust linkages with knowledge centres and compliance with incubation regulations.

Originality/value

This study provided information on various technological learning mechanisms through which tenant firms in the incubation system in Nigeria acquire relevant capabilities (technological and non-technological) that sustain them after graduation. The study also contributed to the growing literature on incubation system and entrepreneurship.

Details

African Journal of Economic and Management Studies, vol. 6 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 3 July 2017

Qi Ai and Hui Tan

This paper examines the role of acquirers’ prior related knowledge in the post-acquisition integration process. The purpose of this paper is to identify what constitutes the key…

1368

Abstract

Purpose

This paper examines the role of acquirers’ prior related knowledge in the post-acquisition integration process. The purpose of this paper is to identify what constitutes the key prior related knowledge that can contribute to the reverse knowledge transfer following Chinese firms’ outward mergers and acquisitions (M&As) to Europe, and explain how prior related knowledge affects such transfer of knowledge.

Design/methodology/approach

The authors employ a multiple case study approach. Semi-structured interviews were conducted from February 2012 to June 2013 with 24 managers.

Findings

The authors find that, in addition to knowledge about the target, prior international business experience, R&D capability, and industrial capabilities are key components of acquirers’ prior related knowledge that can contribute to the success of M&A integration and post-acquisition reverse knowledge transfer. Indeed, Chinese acquirers’ prior related knowledge can influence the reverse knowledge transfer from acquired firms to acquirers by directly improving acquirers’ absorptive capacity and building a harmonious organisational climate to facilitate such transfer.

Originality/value

This paper contributes to the absorptive capacity and the cross-border M&A literature. It extends the current knowledge on the key components of an acquirer’s prior related knowledge in the outward M&A by Chinese firms. It also uncovers how post-acquisition reverse knowledge transfer is affected by acquirers’ prior related knowledge.

Details

Journal of Organizational Change Management, vol. 30 no. 4
Type: Research Article
ISSN: 0953-4814

Keywords

1 – 10 of over 48000