The present study develops a multi-theoretic framework of the mechanisms of value creation in interorganizational relationships and of the key factors influencing those…
The present study develops a multi-theoretic framework of the mechanisms of value creation in interorganizational relationships and of the key factors influencing those mechanisms. The integrative use of several theories in building the model is justified by numerous studies suggesting that a multi-theoretic approach is required to understand the complexity of interorganizational relationships (Gulati, 1998; Osborn & Hagedoorn, 1997; Park et al., 2002). We believe that the relationships between start-up companies and their corporate investors, with each party holding a diversity of strategic and financial objectives, are not less complex than other potential interorganizational relationships. They may therefore also require ideas from several theories to be properly understood. In this study, we build the models applying primarily the resource-based and the knowledge-based views, as well as social capital theory. Ideas from other theoretical approaches are used to complement these theories.
The paper empirically investigates how family firms appropriate acquired resources to become more innovative in the context of merger waves. It draws on resource-based view and the theory of first mover (dis)advantages to examine the implications of the timing of acquisitions on innovation in family firms.
The paper uses a panel data set of Standard & Poor's (S&P) 500 manufacturing firms followed over a period of 31 years.
The study finds empirical support for the predictions that family firms are more able to utilize acquired resources better than nonfamily firms. Furthermore, targets acquired during the upswing of a merger wave are more valuable to family firms and associated with more innovation than for nonfamily firms.
The paper establishes that resources acquired during the upswing of a merger wave are more valuable, provide better resource synergies and impact innovation positively in family firms than nonfamily firms. Second, the paper makes an empirical contribution that family firms absorb external resources markedly differently and more efficiently than nonfamily firms. Third, the paper enhances a better understanding of the influence of family ownership on the relationship between acquisitions and innovation outputs.
This study uses a new, fine-grained, firm-based measure of target resources to investigate the relationship between target resource type and acquirer stock market…
This study uses a new, fine-grained, firm-based measure of target resources to investigate the relationship between target resource type and acquirer stock market performance. Our findings suggest that the market punishes acquirers of knowledge-based resources more than those that buy property-based resources due to the perceived uncertainty regarding the value of targets’ knowledge resources. In support of the underlying uncertainty argument, we find that managers announcing knowledge-based mergers provide more information in their press releases than those announcing property-based transactions. While prior studies have suggested that resource relatedness may moderate the resource type and acquisition performance link, our findings do not support either a direct or moderating relationship.
Merger and acquisition activity generates a substantial amount of discussion within business circles among academics, analysts, and the media. Even though research and…
Merger and acquisition activity generates a substantial amount of discussion within business circles among academics, analysts, and the media. Even though research and experience demonstrates that many mergers and acquisitions fall short of the intended goal of creating shareholder value, mergers and acquisitions still persist in the marketplace. The purpose of this discussion is to suggest that a potential explanation for this dilemma can be found by applying the resource-based rationale of acquisition within an evolutionary framework of business dynamics.
A firm's behavior is constrained by its access to resources owned or controlled by different constituencies in its environment. Mergers and acquisitions are one way to…
A firm's behavior is constrained by its access to resources owned or controlled by different constituencies in its environment. Mergers and acquisitions are one way to proactively manage these resource dependencies. Research on resource dependence reducing merger and acquisition patterns provides an important cornerstone of resource dependency theory and a basis of our present knowledge of the aggregate industry-level merger and acquisition patterns. However, due to the predominant focus on inter-industry merger and acquisition patterns in earlier research, much less is known as to whether the same logic could also be applied to explain intra-industry merger and acquisition patterns. In this chapter, we extend the resource dependence results to an intra-industry context. In particular, we show that mergers and acquisitions among pharmaceutical firms tend to take place among firms with technological and competitive interdependencies. To distinguish our finding from the competing resource scale and scope explanations, we show that the likelihood of a resource dependence reducing acquisition is moderated by the crowding of firms’ technological positions and prior alliance ties. Consistent with the resource dependence explanation, both weaken the effect of overlapping technological positions even though both alliance ties and crowding otherwise are positively related to merger and acquisition patterns in line with the social structural explanations.
Young/small firms are often seen as acquisition targets, but rarely viewed as potential acquirers. However, in this study we found that one-third of the young ventures in…
Young/small firms are often seen as acquisition targets, but rarely viewed as potential acquirers. However, in this study we found that one-third of the young ventures in our sample pursued aggressive growth though acquisition of their competitors. Furthermore, contrary to conventional wisdom, we found striking evidence that young firms pursuing growth via acquisition significantly outperformed their peers who pursued growth via internal development. Thus, growth via acquisition clearly represents a viable strategic option for young, small firms.
The amount of electronic resources available in academic libraries has greatly increased in the past several years, and a number of writers have commented that electronic…
The amount of electronic resources available in academic libraries has greatly increased in the past several years, and a number of writers have commented that electronic resources are replacing acquisitions in other formats. To see how an increase in acquisitions of electronic resources was affecting overall acquisitions, statistics for the libraries of the State University of New York (SUNY) were examined, and a related survey was done of librarians at those institutions. One conclusion was that the amount spent on electronic resources has not continually increased, but in fact decreased in some years. Another conclusion was that although electronic resources are consuming a higher proportion of the overall acquisitions budget, at least in the SUNY system the money is not necessarily coming at the expense of acquisitions in other formats.
The aim of this paper is to analyze the influence of intangible assets and similarity of resources on the choice between acquisitions and joint ventures and whether it is…
The aim of this paper is to analyze the influence of intangible assets and similarity of resources on the choice between acquisitions and joint ventures and whether it is different in domestic and European operations. In order to test these relations, a sample of domestic and European growth deals was selected (563 deals, of which 449 are acquisitions and 114 are joint ventures). Results demonstrate that it is more probable that firms will choose acquisitions if there is a close similarity between the resources of the firms. Also, if the operation is domestic, companies with higher proportions of intangible resources prefer acquisitions.
This paper aims to build a theory model to examine the influencing mechanism of entrepreneurial environment on new firm performance based on network view and resource…
This paper aims to build a theory model to examine the influencing mechanism of entrepreneurial environment on new firm performance based on network view and resource‐based view, and then carry out empirical research.
Data were obtained from 112 new firms, through the use of questionnaires, in Changchun city, China.
Evidence indicates that the entrepreneurial environment has an impact on new firm performance through entrepreneurial network and resource acquisition. The results show that eight out of ten hypotheses are supported.
In a hostile, dynamic and complex environment, the new firm should enhance its entrepreneurial network to ensure resource acquisition and then promote performance.
The paper shows definitely the significance of entrepreneurial network as a bridge between external environment and resource acquisition and new firm performance. Entrepreneurial network and resource acquisition are identified as important intermediary variables, and resource combination ability as a moderating variable. This paper examines the influence of external environment on new firm performance. The research has some theoretical and managerial implications for new firms' survival and obtaining growth in highly uncertain and turbulent environments.
More and more firms view the acquisition of foreign firms as animportant component of their internationalization strategy. An importantbut frequently overlooked condition…
More and more firms view the acquisition of foreign firms as an important component of their internationalization strategy. An important but frequently overlooked condition for the successful implementation of such a strategy is the consistent and appropriate integration of human resource management into the overall internationalization strategy (global, multilocal, hybrid). Offers guidelines on the significance and contents of human resource management practices in this context. The emphasis is on the strategically appropriate integration of the target organization with the acquiring corporation.