MERGERS AND ACQUISITIONS: STRATEGIC -ORGANIZATIONAL FIT AND OUTCOMES 1 (original) (raw)

Thirty Years of Mergers and Acquisitions Research: Recent Advances and Future Opportunities

The complex phenomenon that mergers and acquisitions (M&As) represent has attracted substantial interest from a variety of management disciplines over the past 30 years. Three primary streams of enquiry can be identified within the strategic and behavioural literature, which focus on the issues of strategic fit, organizational fit and the acquisition process itself. The recent achievements within each of these research streams are briefly reviewed. However, in parallel to these research advances, the failure rates of mergers and acquisitions have remained consistently high. Possible reasons for this dichotomy are discussed, which in turn highlight the significant opportunities that remain for future M&A research.

30 YEARS OF MERGERS AND ACQUISITIONS RESEARCH: RECENT ADVANCES AND FUTURE OPPORTUNITIES

The complex phenomenon that mergers and acquisitions (M&As) represent has attracted substantial interest from a variety of management disciplines over the past 30 years. Three primary streams of enquiry can be identified within the strategic and behavioural literature which focus on the issues of strategic fit, organizational fit and the acquisition process itself.

Mergers and acquisitions: A comparative review of literature

Industrija, 2016

The paper aims to review scholastic research on the effect of M&As on firm performance and present a comparative analysis of Indian M&As visa-vis those occurring in other nations. 108 articles in referred journals published between 2005 and 2015 have been surveyed with a focus on comparing firm performance parameters prior and post the M&A. Firm performance has been inspected via three measures i.e. accounting measures, stock market performance measures and qualitative measures. On the basis of these three measures, literature on mergers in India with those occurring in another 23 countries was compared. The review has shown that irrespective of the nation, M&As may impact the accounting and stock market performance measures of the acquirer and target firms in a positive, negative or mixed manner. M&As in nations other than India have received more academic attention with respect to the effect on qualitative issues like cultural compatibility, downsizing and innovation. Cultural incompatibility and downsizing are problems of M&As in India as well as other nations. Indian domestic M&As have resulted in greater market share whereas majority of the M&As in other nations have lost customer base. Although literature studying the outcomes of M&As on firm performance from a pre-post perspective are multifarious, a comparative assessment of the studies on M&As occurring in India with those carried out in other nations of the world is a novel attempt.

An Overview of Three Decades of Mergers and Acquisitions Research

Mergers and acquisitions (M&A) have long attracted managers’ attention and have been researched in different perspectives and using different theories. In this study we grasp the wealth of extant research in the field of M&As. We conducted a bibliometric study of 635 articles on strategic management and international business research published in 34 highly ranked management journals between 1983 and 2012. We performed citation, co-citation and factor analyses to uncover the issues examined by scholars, the main theoretical approaches and themes researched. The results show a relative shift from economic and financial approaches to knowledge-based and organizational learning perspectives in recent years. There was also an evolution from assessing the performance of firms after an M&A to seeking an understanding of what may drive synergy creation after the integration process. Furthermore we observed an increasing interest in cross-border M&As. We discuss our findings, identifying gaps and suggesting paths for future research.

The evolving role of mergers and acquisitions in competitive strategy research

This chapter intends to investigate the role of strategic mergers and acquisitions (hereinafter M&As), traditionally viewed as a corporate strategy option, in sustaining competitive strategy, offering a description of the whole acquisition process and discussing the main and conflicting results produced by the abundant empirical research on this topic. The established business literature considers M&As as a corporate strategy tool by which sustain and implement growth. Following Haspeslagh and Jemison (1991) we contend, however, that acquisitions can bring into a company capabilities it finds hard to develop internally and provide the opportunity to leverage the existing ones; under this regard, they contribute to gain or renew sustainable competitive advantages. Despite the huge number of empirical researches carried out so far, the evaluation of M&As performance for the acquiring firm is still an open issue. We adopt a process approach to M&A and suggest that acquisition performance is the outcomes of all sub-processes in which can ideally be split the whole acquisition process, each of which is alone necessary, although not sufficient, to grant overall acquisition success. Integration features are discussed in details, with a particular emphasis on acquisition performance metrics.

An Empirical Analysis of Post-Merger Organizational Integration

The Scandinavian Journal of Economics, 2016

We study organizational integration after merger. Integration is implemented primarily by reassigning high-skilled workers, especially in R&D or managers, rather than large-scale mixing of workforces. Mixing is biased towards establishments set up after merger, rather than existing establishments. Turnover is high for both Acquiring and Target workers, but new hiring yields stable total employment. Target employees have higher turnover and reassignment; these are mitigated if the Target firm is larger in comparison to the Acquiring firm. These patterns indicate the importance of human capital and knowledge sharing, are consistent with the brokerage view of networks, and suggest substantial integration costs. _________________________ This paper was previously titled "Mergers of Equals and Unequals." The data were provided by Statistics Denmark. We gratefully acknowledge funding from the Marie Curie Program of the European Commission (MEIF-2003-501280) and the Universidad Carlos III (Smeets), the Aarhus School of Business (Ierulli and Gibbs), and the Stigler Center and Otto Moensted Foundation (Gibbs). For comments on various drafts we thank

Strategic Business Fits And Corporate Acquisition: Empirical Evidence

A sample of 114 mergers made by randomly selected bidders during 1962 to 1983 is classified by changes in the product market opportunities of the bidder firms. Multivariate regression analysis shows that acquisitions which permit the bidder access to new but related markets create the most value.