Session 116

Acquisitions - After the Deal

Track F

Date: Tuesday, October 6, 2015

Track X

Time: 14:15 – 15:30

Paper

Room: Governor's Square 10


Session Chair:

  • Douglas Miller, Rutgers University

Title: A New Perspective on Top Managers’ Turnover in Post-Acquisition: The Case of Diversity

Authors

  • Keivan Aghasi, Polytechnic University of Milan
  • Monia Lougui, Royal Institute of Technology Stockholm
  • Anders Broström, KTH Royal Institute of Technology
  • Massimo Colombo, Polytechnic University of Milan

Abstract: This paper proposes an alternative rationale behind turnover of target’s top managers in post-acquisition regardless of their human capital and their coordinating role, which are in favor of managerial retention. The paper examines the ex-ante diversity in the targets’ TMTs as an antecedent of the turnover in post-acquisition. The empirical analysis shows that managerial position diversity as a separation, pay disparity and industrial tenure diversity as a variety reduces coordination efficiency to transfer knowledge. Henceforth, acquirer replaces such teams to provide necessary coordination capacity. The study is based on the 2164 top managers of 297 medium size and large Swedish firms, acquired between 2001 and 2006 in knowledge intensive and high-tech sectors.

Title: Can’t Touch This! Post-Acquisition Integration and Stakeholder Relationships

Authors

  • Emanuele Bettinazzi, EMLYON

Abstract: In this paper I analyze the effects that the post-acquisition integration process may have on the stakeholder-based relational resources of the target firm. First I submit that acquirors can benefit from the acquisition of target firms which possess strong relationship with stakeholders. Moreover, I hypothesize that structural integration has a negative effect on the stakeholder-based relational resources and this may, in turn, reduce the performance of the acquisition. I test the hypothesis on a sample of 170 acquisitions. Preliminary results show partial confirmation of the hypotheses submitted. In particular results suggest that relationship with stakeholders can be a valuable resource to be acquired, but the organizational effects that structural integration have on relational resources may endanger the economic performance of the acquisition.

Title: Horizontal Mergers and Acquisitions: Cost Structure, Cost-Trade Off, and Strategic Motives

Authors

  • Sveinn Vidar Gudmundsson, Toulouse Business School
  • Rico Merkert, University of Sydney
  • Renato Redondi, University of Brescia

Abstract: Using a contingency perspective, we argue that the strategic motives in the wake of mergers and acquisitions are reflected in the decomposed cost structure of the merged firm. We hypothesize that horizontal mergers and acquisitions divided into two distinct ex-ante performance groups demonstrate contrasting cost effects ex-post, reflecting different strategic motives. Analyses of the international airline industry from 1980 to 2013 mostly support our hypotheses. The study demonstrates why some mergers and acquisitions under certain conditions can be a strategic success regardless of whether or not they improve the overall cost efficiency of the ex-post firm.

Title: The Impact of Corporate Acquisitions on Innovation: Evidence from a Quasi-Experiment

Authors

  • Francisco Morales, University of Colorado, Boulder
  • Yuchen Zhang, University of Colorado-Boulder

Abstract: Innovation is critical for the survival and performance of firms. However, the capabilities that support innovation activities are difficult to develop. Firms often have to engage in corporate acquisitions in order to improve their innovation performance. Yet, some acquisitions do not succeed as planned. Past studies have shown that the impact of acquisitions on innovation can be either positive or negative. This mixed evidence might be explained by identifying moderators of this relationship. In this study, we design a quasi-experiment in order to determine under what conditions acquisitions have a positive effect on innovation performance. We contribute to the literature on corporate strategy and innovation by showing when acquisitions are more likely to increase innovation outcomes.

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 X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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