Session 113

Serial Acquisitions: Strategies and Processes

Track F

Date: Sunday, October 4, 2015

Track H

Time: 16:15 – 17:30

Paper

Room: Director's Row I


Session Chair:

  • Yue Maggie Zhou, University of Michigan

Title: Complexity of Acquisition Sequences: A Corporate Indigestion and Absorption Perspective

Authors

  • Johannes Luger, University of Geneva; University of St. Gallen
  • Tomi Laamanen, University of St. Gallen

Abstract: Building on prior research on acquisition-sequences, we examine the implications of the complexity of an acquisition-sequence on acquirer performance. Although doing different types of acquisitions can be beneficial for an acquirer, it can likewise reduce a firm’s ability to integrate them effectively. We examine the effects of two types of acquisitions—resource-deepening and resource-widening—acquisitions. Building on absorptive capacity and organizational indigestion arguments, we find support for our arguments on the limited capacity of acquirers to effectively absorb acquisition-sequences that contain resource-deepening and resource-widening acquisitions. This negative effect, however, is reduced if the acquisitions are processed across different firm-entities; the acquirer has experience from coordination acquisitions across different entities; and the target-to-target similarity is high. Our findings complement the dominant learning perspective on acquisition-sequences.

Title: How to Exploit M&A Synergy: The Process of Being a Business Group

Authors

  • Yu Shih Lee, Chung Yuan Christian University
  • Wenchieh Wu, St. John's University
  • LiangYu Shih, Chung Yuan Christian University

Abstract: This research aims to show how a single business takes advantage of M&A as a strategy to become a business group. We explore market commonality and resource similarity between the acquirers and the acquisition ones, and examine how the acquirers integrate M&A targets to exploit the expected synergy. Based on five exploratory case studies in a listed business group in Taiwan, the article develops a theoretical model suggesting that the acquirers can distinguish M&A targets via the relative market and resource relationship between the acquirers and the acquisition ones. We find that according to different motives, the acquirer adopts different M&A approach to integrate M&A targets and implements knowledge transfer, coevolving, and patching in different ways, thereby exploiting the expected synergy.

Title: Propensity, Prowess, and Processes: A Review of Acquisition Experience Research

Authors

  • Svante Schriber, Stockholm Business School

Abstract: The rapid growth in research interest into whether firms can learn to master acquisitions has come at the expense of coherence. This paper provides a critical review of empirical research on acquisition experience. It informs acquisition research by condensing and summarizing empirical findings in relation to three common topical areas: how past acquisitions influence propensity to grow via further acquisitions, acquisition prowess, and the processes underpinning acquisition experience. It suggests balancing current biases in data, and identifies remaining gaps in acquisition experience research. In particular, there is need for more in-depth data on the processes of acquisition experience that allows, first, to unravel more complex pictures of experience networks, and second, to theoretically distinguish more clearly the organizational learning in acquisition experience.

Title: Why Acquiring Firms Continue to Use Mergers As a Major Strategic Option?

Authors

  • Zafeira Kasrtinaki, University of Bath
  • Athanasios Tsagkanos, University of Patras

Abstract: This paper empirically examines how much of the mergers are due to misevaluation reasons and how much due to opportunities of organizational growth and provide answers to the long standing question as to why acquiring firms continue to use mergers as a major strategic option despite the lack of gains. It decomposes market to book value ratio to four composites capturing firm specific, and industry specific misevaluation, and short and long run growth opportunities and empirically examine their effect on merger activity using UK data over the period 1989-2012. Findings show that an acquirer is not able to attribute the correct amount to each composite of a target’s market to book value and may overpay for a target as it overestimates its long run growth opportunities

All Sessions in Track F...

Sun: 08:00 – 09:15
Session 193: Phenomenon-driven Research in Strategic Management
Sun: 09:45 – 11:00
Session 221: Reflecting on the scope of the firm: New avenues for future research
Sun: 11:15 – 12:30
Session 194: The State and Future of Disciplinary Research in Strategic Management
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Sun: 17:45 – 00:00
Session 314: Corporate Strategy Business Meeting
Mon: 08:00 – 09:15
Session 111: Portfolio Management: Diversification and Divestitures
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 195: Where Are the Boundaries of Strategic Management Research?
Session 210: M&A/JV Implementation
Mon: 16:45 – 18:00
Session 112: Acquisitions - Before the Deal
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 115: Horizontal and Vertical Scope: Interactions and Embeddedness
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 117: Issues and Answers for the Diversified Firm
Session 145: Strategic Leadership and Corporate Strategy
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 116: Acquisitions - After the Deal
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 110: Models of Corporate Strategies
Tue: 17:30 – 18:45
Session 114: The Interplay Between Financial Markets & Advisors and the Acquiring Firm
Session 271: Spinouts

All Sessions in Track H...

Sun: 08:00 – 09:15
Session 22: On Boxes, Arrows and Multiple Case Studies
Sun: 09:45 – 11:00
Session 23: Simple Rules and Other Seminal Contributions
Sun: 11:15 – 12:30
Session 24: Tribute to Kathleen Eisenhardt
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Session 154: Processes of Capability Development, Rejuvenation and Erosion and their Interplay with Strategy
Sun: 17:45 – 00:00
Session 316: Strategy Process Business Meeting
Mon: 08:00 – 09:15
Session 162: Strategy Formation Processes
Mon: 11:15 – 12:30
Session 210: M&A/JV Implementation
Mon: 13:45 – 15:00
Session 169: The Role of Attention in Organizational Processes (Evaluation, Promotion, Innovation and Growth)
Mon: 16:45 – 18:00
Session 134: Leading change implementation processes
Tue: 08:00 – 09:15
Session 135: Micro-processes for developing dynamic capabilities
Session 212: Initiative Generation, Opportunity Sensing, Decision and Change Processes: The Role of Context and Cognition
Session 255: Processes for Innovation and Ideation
Tue: 11:00 – 12:15
Session 211: Cognition, Discourse and Innovation Dynamics within and across Organizations
Tue: 14:15 – 15:30
Session 275: External Interface Processes and their Consequences
Tue: 17:30 – 18:45
Session 165: Strategic Change: The Role of Cognition and Affect/Emotions


Strategic Management Society

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