Extant research posits that mergers and acquisition (M&As) do not create value. Still many firms adopt expansion strategies such as alliances, joint ventures (JVs), and…
Extant research posits that mergers and acquisition (M&As) do not create value. Still many firms adopt expansion strategies such as alliances, joint ventures (JVs), and M&As to grow and enhance their performance. Through performing a meta-analysis on 204 papers that assess the relationship between the three most prevalent expansion strategies formed by firms, alliances, JVs, and M&As and their different substantive and symbolic performance effects, this study contributes in two ways. First, it becomes clear that alliances and M&As enhance a firm’s substantive performance, while no positive performance effect is observed for JVs. In turn, all three expansion strategies boost a firm’s symbolic performance in terms of its legitimacy and status. Second, a distinction between their effects on a firm’s substantive performance in terms of their market-based and accounting-based performance shows that alliances and M&As both positively contribute to a firm’s accounting-based performance, while only the former spurs a firm’s market-based returns. This indicates that M&As have more long-term accounting-based performance effects compared to alliances and JVs, which suggests that in the long-term firms do best by expanding through M&As.
Increasing chances of firm survival requires enduring entrepreneurship or the ability to balance competing demands for exploration and exploitation. We developed how…
Increasing chances of firm survival requires enduring entrepreneurship or the ability to balance competing demands for exploration and exploitation. We developed how acquisitions can provide needed disruption to change a firm’s dominant orientation toward exploration or exploitation or enable a continued focus on a firm’s dominant orientation. The result is a new typology for acquisition integration associated with different pre- and post-acquisition characteristics. For example, a firm with an exploitation orientation faces different integration challenges in acquiring targets with an exploration or exploitation orientation. We also distinguished between human and task integration to enable more nuanced integration decisions that help to reconcile conflicting findings on acquisition integration decisions. Implications for management research and practice were discussed.
Acquisition integration is important to realize synergies and to achieve acquisition success. However, there is a lack of clarity on pertinent integration approaches…
Acquisition integration is important to realize synergies and to achieve acquisition success. However, there is a lack of clarity on pertinent integration approaches suggesting that integration is more complex and dynamic than traditionally assumed. In this chapter, we shed light on ambiguous cause effect relationships by investigating the effect of integration related decisions on intermediate goals. Additionally, we argue that entrepreneurial integration skills, or proactivity under ambiguity, are needed to keep pace with the dynamism inherent in acquisition integration. Based on primary data on 116 acquisitions, we find that entrepreneurial integration skills can display both advantages and disadvantages. While it helps to realize expected and serendipitous synergies, it can also trigger employee uncertainty due to decreased transparency. In supplementary analysis, we show measures to outperform with various integration approaches. Implications for management research and practice are identified.
Family businesses dominate the economic landscape and contribute to the market for corporate control across the globe, either as acquiring companies or as target. However…
Family businesses dominate the economic landscape and contribute to the market for corporate control across the globe, either as acquiring companies or as target. However, there is still limited research investigating acquisitions by or of family firms. The authors begin to remedy this gap by providing a narrative review of extant research. Findings indicate that acquisitions in family firms are primarily regarded as a tool to solve succession problems, and not as a strategic tool to achieve growth. A greater dialog between acquisition and family business scholars can be an important means to improve theory and practice of acquisitions involving family businesses across the globe.
While there is an increasing understanding of the challenges that can emerge in integration processes of cross-border mergers and acquisitions, there is a scarcity of…
While there is an increasing understanding of the challenges that can emerge in integration processes of cross-border mergers and acquisitions, there is a scarcity of research on how the different integrative activities should be temporally sequenced. Based on an in-depth analysis of three acquisitions, we find that structural and cultural integration are intertwined. We find that cultural integration will begin only once structural integration is in progress. Cultural differences can, however, impede structural integration if structural integration is done in conflict with the existing culture of the acquired company. Thus, structural integration should come first, but it should be done in appreciation with the acquired company’s existing culture. Cultural change is then facilitated in an iterative manner over time by the new structure. Our chapter contributes to an improved understanding of the temporal dynamics of integration by demonstrating the mutually reinforcing effects of structural and cultural integration in cross-border acquisitions.
This chapter explores the challenges presented to public organizations by neoliberal thinking and the acceptance of the neoliberal capitalist agenda. Demonstrably, severe…
This chapter explores the challenges presented to public organizations by neoliberal thinking and the acceptance of the neoliberal capitalist agenda. Demonstrably, severe economic, political, and social dislocations are the result. Nevertheless, neoliberal influence remains and intensifies. We argue that this counterintuitive result is not grounded in either instrumental or theoretical merit but in the creation and dissemination of certain identifiable memes. The chapter proceeds with a critical examination of current neoliberal memes, an appraisal of their impact on government, society and economics, and the derivation of alternative memes from a Smithian perspective on political economy. Based on this critique and the derived memes, the chapter offers suggestions for a pragmatic cultural and administrative praxis that promise not only to moderate the influence of neoliberal memes and to mitigate tendencies for the propagation of new disadvantageous memeplexes, but also to avert the problems associated with the traditional distrust of government agencies and their top-down, disengaged, technical, and expert-driven solutions.
This chapter explores different strategies implemented by three companies using professional (LinkedIn) and non-professional (Facebook) social networking websites (SNWs…
This chapter explores different strategies implemented by three companies using professional (LinkedIn) and non-professional (Facebook) social networking websites (SNWs) as a recruitment tool and investigates the influence of their perceived usability and attractiveness on job seekers’ attraction and their intention to apply.
First, a laboratory experiment involving 171 MBA students compares the effectiveness of three different social recruitment strategies. Second, a survey among 110 job seekers focuses on the most effective strategy in terms of attraction as an employer and the influence of perceived usability and attractiveness of professional SNW pages on job seekers’ intention to pursue the job.
The laboratory experiment confirms the key role of LinkedIn as an e-recruitment practice. The survey shows that the overall company image, the usability of the LinkedIn page and the interaction between the attractiveness of the page and the overall company image positively influence job seekers’ intention to pursue the job.
The research offers insights on job seekers’ reactions to 2.0 Internet-based recruitment. Companies should focus on and invest in professional social medias, paying attention to the usability of their SNWs pages.
Originality/value of the chapter
Recruitment is a strategic HRM practice to attract talents; however, research lags behind practice and little is known about job seekers’ perceptions and reactions to Internet recruitment. This chapter sheds light on the use of social media for recruitment and identifies two features that contribute to an effective e-recruitment strategy.