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The authors propose and test a theoretical framework that develops and analyzes precursors to firm acquisitions to determine if acquirers differ from other firms.

The authors use longitudinal, archival data from a sample of the largest firms in the global pharmaceutical industry from 1991 to 2012 with 1,327 firm-year observations.

The authors integrate prior research to show that the firm characteristics involving (1) R&D investment, (2) prior experience and (3) network centrality influence the likelihood that a firm will complete an acquisition.

In contrast to research focusing on the performance of acquiring firms, the authors show that firm characteristics predict acquisition activity by highlighting that acquiring firms differ from other firms. The authors also develop how network synergies can be realized by acquirers that have information advantages from more central network positions.

High-Performance Work Systems (HPWS) are viewed as strategic levers to a firm’s core competencies’ sustainability and continuous competitive advantage. The purpose of this paper is to explore what factors facilitate HPWS utilization, with a particular focus on the extent to which social capital (SC) derived from buyer-supplier relationships functions as a communication channel to spread effective HPWS implementation.

The authors propose a model of HPWS in which external SC not only favors the use of HPWS but also moderates the incidence of other common facilitators such as technology and flexibility. The study uses data from Spanish manufacturing industry.

Firms yielding external SC use HPWS more intensely, and the effect of technology constituents on HPWS utilization is contingent on SC accumulation. The findings are consistent with the existing HR literature on the subject but broaden its perspective by analyzing a specific pattern of SC and its pivotal role in the HPWS utilization process.

The cross-sectional nature of the database leaves open the possibility of causality relationship exploration between the variables of interest, which means that any causal interpretation should be cautious and properly motivated. The study is conducted in the Spanish manufacturing industry context, hence aims to generalize its results by explaining the logic behind the coexistence of HPWS and SC on a same conceptual level. This should be carefully treated and could be further strengthened by other country-level research. The approach does not consider the internal synergic mechanisms and the integration of HR practices.

The paper reveals the importance of inter-organizational SC in the Spanish manufacturing industry by showing how its embodiment in buyer-supplier relationships may allow firms to better understand the context in which HPWS are more likely to be useful.

The impact of social relationships on effective human resource management practices is highlighted.

The authors explore the factors that facilitate HPWS utilization, with a particular focus on the extent to which SC derived from buyer-supplier relationships functions as a communication channel to spread effective HPWS implementation.

Acquisitions are complex and ambiguous events fraught with information asymmetries emphasizing market failure before an acquisition or organizational failure during integration. While often treated in isolation, market and organization failure are intertwined in acquisitions as integration planning starts before a deal is closed. Effective integration begins with a deep understanding of the target to be able to share assets and knowledge. However, acquiring firms currently have limited solutions to address information asymmetries. Most remedies primarily aim at market failure using due diligence and external advisors, leaving information asymmetry due to organizational failure primarily unattended. The authors develop a typology that leverages informal and formal social ties to address information asymmetries across the acquisition process that jointly considers market and organizational failure. The typology of this study combines existing research to develop how social ties with stakeholders influence acquisitions and can increase their success.

The potential for resource combinations to have adverse consequences for acquiring firms is often overlooked in research. However, considering potential inimical resources can explain target and acquiring firm actions across the phases (evaluation, completion, and integration) of an acquisition. The authors outline how managers deal with inimical resources in acquisitions. Specifically, during evaluation, due diligence offers managers from acquiring firms the opportunity to avoid potential inimical resources by abandoning an acquisition. During integration, inimical resources can be dealt with either by limiting integration, or with planned or unplanned divestment. As a result, inimical resources explain observed actions and provide a context for making and improving corporate restructuring decisions.