Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms

Published Online:https://doi.org/10.1287/orsc.1070.0313

References

  • Agrawal A., Jaffe J., Cooper C., Gregory A. The post-merger performance puzzle. Advances in Mergers and Acquisitions (2000) (Elsevier Science, New York) 7–42CrossrefGoogle Scholar
  • Ahuja G., Katila R. Technological acquisitions and the innovation performance of acquiring firm: A longitudinal study. Strategic Management J. (2001) 22:197–220CrossrefGoogle Scholar
  • Ahuja G., Lampert C. Entrepreneurship in the large corporation: A longitudinal study of how established firms create breakthrough inventions. Strategic Management J. (2001) 22:521–543CrossrefGoogle Scholar
  • Aiken L., West S.Multiple Regression: Testing and Interpreting Interactions (1991) (Sage Publications, London) Google Scholar
  • Alexander G., Francis J.Portfolio Analysis (1986) 3rd ed.(Prentice Hall, Englewood Cliffs, NJ) Google Scholar
  • Alvarez S., Barney J. How entrepreneurial firms can benefit from alliances with large partners. Acad. Management Executive (2001) 15:139–148CrossrefGoogle Scholar
  • Anand J., Delios A. Absolute and relative resources as determinants of international acquisitions. Strategic Management J. (2002) 23:119–134CrossrefGoogle Scholar
  • Barkema H., Vermeulen F. International expansion through start-up or acquisition: A learning perspective. Acad. Management J. (1998) 41:7–26CrossrefGoogle Scholar
  • Barney J. Returns to bidding firms in mergers and acquisitions: Reconsidering the relatedness hypothesis. Strategic Management J. (1988) 9:71–78CrossrefGoogle Scholar
  • Barney J. Firm resources and sustained competitive advantage. J. Management (1991) 17:99–120CrossrefGoogle Scholar
  • Berger P., Ofek E. Diversification's effect on firm value. J. Financial Econom. (1995) 37:39–65CrossrefGoogle Scholar
  • Bergh D. Predicting divestiture of unrelated acquisitions: An integrative model of ex ante conditions. Strategic Management J. (1997) 18:715–731CrossrefGoogle Scholar
  • Berman D. Can M&A's “best of times” get better? Wall Street J. (2007a) January 2):R5Google Scholar
  • Berman D. The game: Handicapping deal hype and hubris. Wall Street J. (2007b) January 16):C1Google Scholar
  • Berry M., Taggart J. Managing technology and innovation: A review. R&D Management (1994) 24:341–353CrossrefGoogle Scholar
  • Blonigen B., Taylor C. R&D intensity and acquisitions in high-technology industries: Evidence from the US electronic and electrical equipment industries. J. Indust. Econom. (2000) 48:47–70CrossrefGoogle Scholar
  • Bresman H., Birkinshaw J., Nobel R. Knowledge transfer in international acquisitions. J. Internat. Bus. Stud. (1999) 30:439–462CrossrefGoogle Scholar
  • Brusoni S., Prencipe A., Pavitt K. Knowledge specialization, organizational coupling, and the boundaries of the firm: Why do firms know more than they make? Admin. Sci. Quart. (2001) 46:597–621CrossrefGoogle Scholar
  • Campbell J., Lo A., MacKinlay A.The Econometrics of Financial Markets (1997) (Princeton University Press, Princeton, NJ) CrossrefGoogle Scholar
  • Capron L., Hulland J. Redeployment of brands, sales forces, and general marketing management expertise following horizontal acquisitions: A resource-based view. J. Marketing (1999) 63:41–54CrossrefGoogle Scholar
  • Capron L., Mitchell W. Bilateral resource redeployment and capabilities improvement following horizontal acquisitions. Indust. Corporate Change (1998) 7:453–484CrossrefGoogle Scholar
  • Capron L., Pistre N. When do acquirers earn abnormal returns? Strategic Management J. (2002) 23:781–794CrossrefGoogle Scholar
  • Capron L., Dussauge P., Mitchell W. Resource redeployment following horizontal acquisitions in Europe and North America, 1988–1992. Strategic Management J. (1998) 19:631–661CrossrefGoogle Scholar
  • Certo S., Covin J., Daily C., Dalton D. Wealth and the effects of founder management among IPO-stage new ventures. Strategic Management J. (2001) 22:641–658CrossrefGoogle Scholar
  • Chakravarthy B. Measuring strategic performance. Strategic Management J. (1986) 7:437–458CrossrefGoogle Scholar
  • Chatterjee S., Wernerfelt B. The link between resources and type of diversification: Theory and evidence. Strategic Management J. (1991) 12:33–48CrossrefGoogle Scholar
  • Chen M. Competitor analysis and interfirm rivalry: Toward a theoretical integration. Acad. Management Rev. (1996) 21:100–134CrossrefGoogle Scholar
  • Christensen C., Raynor M.The Innovator's Solution: Creating and Sustaining Successful Growth (2003) (Harvard Business School Press, Boston, MA) Google Scholar
  • Christensen C., Rosenbloom R. Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network. Res. Policy (1995) 24:233–257CrossrefGoogle Scholar
  • Christman P. Effects of “best practices” of environmental management on cost advantage: The role of complementary assets. Acad. Management J. (2000) 43:663–680CrossrefGoogle Scholar
  • Coff R. Bidding wars over R&D intensive firms: Knowledge, opportunism and the market for corporate control. Acad. Management J. (2003) 46:74–85CrossrefGoogle Scholar
  • Cohen W., Klepper S. The anatomy of industry R&D intensity distributions. Amer. Econom. Rev. (1992) 82:773–799Google Scholar
  • Cohen W., Levinthal D. Innovation and learning: The two faces of R&D. Econom. J. (1989) 99:569–596Google Scholar
  • Cohen W., Levinthal D. Absorptive capacity: A new perspective on learning and innovation. Admin. Sci. Quart. (1990) 35:128–152CrossrefGoogle Scholar
  • Courtney H., Kirkland J., Viguerie P. Strategy under uncertainty. Harvard Bus. Rev. (1997) 75(6):66–79Google Scholar
  • Daily C. Bankruptcy in strategic studies: Past and promise. J. Management (1994) 20:263–295Google Scholar
  • Daily C., McDougall P., Covin J., Dalton D. Governance and strategic leadership in entrepreneurial firms. J. Management (2002) 28:387–412CrossrefGoogle Scholar
  • Day G. The capabilities of market-driven organizations. J. Marketing (1994) 58(4):37–52CrossrefGoogle Scholar
  • Dess G., Ireland R., Hitt M. Industry effects and strategic management literature. J. Management (1990) 16:7–27CrossrefGoogle Scholar
  • Dierickx I., Cool K. Asset stock accumulation and sustainability of competitive advantage. Management Sci. (1989) 35:1504–1513LinkGoogle Scholar
  • Dixit A. Investment and hysteresis. J. Econom. Perspectives (1992) 6:107–132CrossrefGoogle Scholar
  • Dougherty D. Understanding new markets for new products. Strategic Management J. (1990) 11:59–78CrossrefGoogle Scholar
  • Dutta S., Narasimhan O., Rajiv S. Success in high-technology markets: Is marketing capability critical? Marketing Sci. (1999) 18:547–568LinkGoogle Scholar
  • Dutta S., Narasimhan O., Rajiv S. Conceptualizing and measuring capabilities: Methodology and empirical application. Strategic Management J. (2005) 26:277–285CrossrefGoogle Scholar
  • Dyer J., Singh H. The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Acad. Management Rev. (1998) 23:660–679CrossrefGoogle Scholar
  • Empson L., Cooper C., Gregory A. Mergers between professional service firms: Exploring an undirected process of integration. Advances in Mergers and Acquisitions (2000) (Elsevier Science, New York) 205–238CrossrefGoogle Scholar
  • Ethiraj S., Kale P., Krishnan M., Singh J. Where do capabilities come from and how do they matter? A study in the software services industry. Strategic Management J. (2005) 26:25–45CrossrefGoogle Scholar
  • Farjoun M. The independent and joint effects of the skill and physical bases of relatedness in diversification. Strategic Management J. (1998) 19:611–630CrossrefGoogle Scholar
  • Grabowski H., Vernon J. A new look at the risks and returns to pharmaceutical R&D. Management Sci. (1990) 36:804–821LinkGoogle Scholar
  • Griffin A., Hauser J. Patterns of communication among marketing, engineering and manufacturing—A comparison between two new product teams. Management Sci. (1992) 38:360–373LinkGoogle Scholar
  • Griffiths W., Hill R., Judge G.Learning and Practicing Econometrics (1993) (John Wiley and Sons, New York) Google Scholar
  • Griliches Z., Mairesse J., Griliches Z. Productivity and R&D at the firm level. R&D, Patents, and Productivity (1984) (University of Chicago Press, Chicago, IL) 339–374CrossrefGoogle Scholar
  • Gujarati D.Basic Econometrics (1995) 3rd ed.(McGraw-Hill, New York) Google Scholar
  • Harrison J., Hitt M., Hoskisson R., Ireland R. Synergies and post-acquisition performance: Differences versus similarities in resource allocations. J. Management (1991) 17:173–190CrossrefGoogle Scholar
  • Haspeslagh P., Jemison D.Managing Acquisitions: Creating Value Through Corporate Renewal (1991) (The Free Press, New York) Google Scholar
  • Hayward M. L. A. When do firms learn from their acquisition experience? Evidence from 1990–1995. Strategic Management J. (2002) 23:21–39CrossrefGoogle Scholar
  • Heeley M., King D., Covin J. R&D investment level and environment as predictors of firm acquisition. J. Management Stud. (2006) 43:1513–1536CrossrefGoogle Scholar
  • Helfat C., Peteraf M. The dynamic resource-based view: Capability lifecycles. Strategic Management J. (2003) 24:997–1010CrossrefGoogle Scholar
  • Henderson R., Cockburn L. Scale, scope, and spillovers: The determinants of research productivity in drug discovery. RAND J. Econom. (1996) 27(1):32–59CrossrefGoogle Scholar
  • Higgins M., Rodriguez D. The outsourcing of R&D through acquisitions in the pharmaceutical industry. J. Financial Econom. (2006) 80:351–383CrossrefGoogle Scholar
  • Hill C., Rotharmel F. The performance of incumbent firms in the face of radical technological innovation. Acad. Management Rev. (2003) 28:257–274CrossrefGoogle Scholar
  • Hitt M., Harrison J., Ireland R.Mergers and Acquisitions: A Guide to Creating Value for Stakeholders (2001) (Oxford University Press, Oxford, UK) Google Scholar
  • Hitt M., Hoskisson R., Ireland R. Mergers and acquisitions and managerial commitment to innovation in M-form firms. Strategic Management J. (1990) 11:29–47Google Scholar
  • Hitt M., Harrison J., Ireland R., Best A. Attributes of successful and unsuccessful acquisition of U.S. firms. British J. Management (1998) 9:91–114CrossrefGoogle Scholar
  • Hitt M. A., Hoskisson R., Ireland R., Harrison J. Effects of acquisitions on R&D inputs and outputs. Acad. Management J. (1991) 34:693–706CrossrefGoogle Scholar
  • Hoskisson R., Busenitz L., Hitt M. A., Ireland R. D., Camp S. M., Sexton D. L. Market uncertainty and learning distance in corporate entrepreneurship entry mode choice. Strategic Entrepreneurship: Creating a New Mindset (2002) (Blackwell, Oxford, UK) 151–172Google Scholar
  • Hoskisson R., Hitt M. Antecedents and performance outcomes of diversification: A review and critique of theoretical perspectives. J. Management (1990) 16:461–509CrossrefGoogle Scholar
  • Hoskisson R., Johnson R., Moesel D. Corporate divestiture intensity of restructuring firms: Effects of governance, strategy, and performance. Acad. Management J. (1994) 37:1207–1251CrossrefGoogle Scholar
  • Hoskisson R., Hitt M., Johnson R., Moesel D. Construct validity of an objective (entropy) categorical measure of diversification strategy. Strategic Management J. (1993) 14:215–235CrossrefGoogle Scholar
  • Hudson B. Innovation through acquisition. Cornell HRA Quart. (1994) 34:82–87CrossrefGoogle Scholar
  • Ingham H., Kran I., Lovestam A. Mergers and profitability: A managerial success story. J. Management Stud. (1992) 29(2):195–208CrossrefGoogle Scholar
  • Inkpen C., Sundaram A., Rockwood K. Cross-border acquisitions of U.S. technology assets. California Management Rev. (2000) 42(3):50–71CrossrefGoogle Scholar
  • Javidan M., Pablo A., Singh H., Hitt M., Jemison D., Pablo A., Javidan M. Where we've been and where we're going. Mergers and Acquisitions: Creating Integrative Knowledge (2004) (Blackwell Publishing, Malden, MA) 245–261Google Scholar
  • Jensen M. The performance of mutual funds in the period 1945–1964. J. Finance (1968) 23:389–416CrossrefGoogle Scholar
  • Jick T. Mixing qualitative and quantitative methods: Triangulation in action. Admin. Sci. Quart. (1979) 24:602–611CrossrefGoogle Scholar
  • Kahle K., Walkling R. The impact of industry classifications on financial research. J. Financial Quant. Anal. (1996) 31:309–335CrossrefGoogle Scholar
  • King D. Implications of technological uncertainty on firm outsourcing decisions. Human Systems Management (2006) 25:115–125Google Scholar
  • King D., Driessnack J. Investigating the integration of acquired firms in high-technology industries: Implications for industrial policy. Acquisition Rev. Quart. (2003) 10(Summer):260–283Google Scholar
  • King D., Covin J., Hegarty W. Complementary resources and the exploitation of technological innovations. J. Management (2003) 29:589–606Google Scholar
  • King D., Dalton D., Daily C., Covin J. Meta-analyses of post-acquisition performance: Indications of unidentified moderators. Strategic Management J. (2004) 25:187–200CrossrefGoogle Scholar
  • Kogut B., Zander U. What firms do: Coordination, identity, and learning. Organ. Sci. (1996) 7:577–590LinkGoogle Scholar
  • Kusewitt J. An exploratory study of strategic acquisition factors relating to performance. Strategic Management J. (1985) 6:151–169CrossrefGoogle Scholar
  • Langlois R. The vanishing hand: The changing dynamics of industrial capitalism. Indust. Corporate Change (2003) 12:351–385CrossrefGoogle Scholar
  • Larsson R., Finkelstein S. Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: A case survey of synergy realization. Organ. Sci. (1999) 10:1–26LinkGoogle Scholar
  • Larsson R., Brousseau K., Driver M., Sweet P., Pablo A., Javidan M. The secrets of merger and acquisition success: A co-competence and motivational approach to synergy realization. Mergers and Acquisitions: Creating Integrative Knowledge (2004) (Blackwell Publishing, Malden, MA) 3–19Google Scholar
  • Lieberman M., Montgomery D. First-mover (dis)advantages: Retrospective and link with the resource-based view. Strategic Management J. (1998) 19:1111–1125CrossrefGoogle Scholar
  • Loderer C., Martin K. Postacquistion performance of acquiring firms. Financial Management (1992) 21(3):69–80CrossrefGoogle Scholar
  • Lubatkin M. Merger strategies and stockholder value. Strategic Management J. (1987) 8:39–53CrossrefGoogle Scholar
  • Lubatkin M., Shrieves R. Towards reconciliation of market performance measures to strategic management research. Acad. Management Rev. (1986) 11:497–512CrossrefGoogle Scholar
  • Lubatkin M., Srinivasan N., Merchant H. Merger strategies and shareholder value during times of relaxed antitrust enforcement: The case of large mergers during the 1980s. J. Management (1997) 23:59–81CrossrefGoogle Scholar
  • Lubatkin M., Schulze W., Mainkar A., Cotterill R. Ecological investigation of firm effects in horizontal mergers. Strategic Management J. (2001) 22:335–357CrossrefGoogle Scholar
  • McGrath R. Falling forward: Real options reasoning and entrepreneurial failure. Acad. Management Rev. (1999) 24:13–30CrossrefGoogle Scholar
  • McGrath R., MacMillan I. Assessing technology projects using real options reasoning. Res. Tech. Management (2000) 43(4):35–49CrossrefGoogle Scholar
  • Milgrom P., Roberts J. Rationalizability, learning, and equilibrium in games with strategic complementarities. Econometrica (1990) 58:1255–1277CrossrefGoogle Scholar
  • Milgrom P., Roberts J. Complementarities and fit: Strategy, structure, and organizational change in manufacturing. J. Accounting Econom. (1995) 19:179–208CrossrefGoogle Scholar
  • Miller D. An asymmetry-based view of advantage: Towards an attainable sustainability. Strategic Management J. (2003) 24:961–976CrossrefGoogle Scholar
  • Mizik N., Jacobson R. Trading off between value creation and value appropriation: The financial implications of shifts in strategic emphasis. J. Marketing (2003) 67:63–76CrossrefGoogle Scholar
  • Moorman C., Slotegraaf R. The contingency value of complementary capabilities in product development. J. Marketing Res. (1999) 36:239–257CrossrefGoogle Scholar
  • Nelson R., Winter S. Forces generating and limiting concentration under Schumpeterian competition. Bell J. Econom. (1978) 9:524–548CrossrefGoogle Scholar
  • Penrose E.The Theory of the Growth of the Firm (1959) (John Wiley, New York) Google Scholar
  • Peteraf M. The cornerstones of competitive advantage: A resource-based perspective. Strategic Management J. (1993) 14:179–191CrossrefGoogle Scholar
  • Peteraf M., Bergen M. Scanning dynamic competitive landscapes: A market-based and resource-based framework. Strategic Management J. (2003) 24:1027–1041CrossrefGoogle Scholar
  • Priem R., Butler J. Is the resource-based “view” a useful perspective for strategic management research? Acad. Management Rev. (2001) 26:22–40Google Scholar
  • Puranam P., Singh H., Zollo M. Organizing for innovation: Managing the coordination-autonomy dilemma in technology acquisitions. Acad. Management J. (2006) 49:263–280CrossrefGoogle Scholar
  • Ramanujam V., Varadarajan P. Research on corporate diversification: A synthesis. Strategic Management J. (1989) 10:510–551CrossrefGoogle Scholar
  • Ranft A., Lord M. Acquiring new knowledge: The role of retaining human capital in acquisitions of high-tech firms. J. High Tech. Management Res. (2000) 11:295–319CrossrefGoogle Scholar
  • Ranft A., Lord M. Acquiring new technologies and capabilities: A grounded model of acquisition implementation. Organ. Sci. (2002) 13:420–441LinkGoogle Scholar
  • Ravenscraft D., Scherer F.Mergers, Sell-Offs, and Economic Efficiency (1987) (The Brookings Institution, Washington, D.C.) Google Scholar
  • Reuer J. From hybrids to hierarchies: Shareholder wealth effects of joint venture partner buyouts. Strategic Management J. (2001) 22:27–44CrossrefGoogle Scholar
  • Saxton T., Dollinger M. Target reputation and appropriability: Picking and deploying resources in acquisitions. J. Management (2004) 30:123–147CrossrefGoogle Scholar
  • Schonfeld E., Malik O. Gulp! Mergers are back with a vengeance. Business 2.0 (2003) 4(7):88–95Google Scholar
  • Schweizer L. Organizational integration of acquired biotechnology companies into pharmaceutical companies: The need for a hybrid approach. Acad. Management J. (2005) 48:1051–1074CrossrefGoogle Scholar
  • Sharma S., Durand R., Gur-Arie O. Identification and analysis of moderator variables. J. Marketing Res. (1981) 18:291–300CrossrefGoogle Scholar
  • Sigglekow N. Misperceiving interactions among complements and substitutes: Organizational consequences. Management Sci. (2002) 48:900–916LinkGoogle Scholar
  • Singh K., Ang S., Leong S. Increasing replication for knowledge accumulation in strategy research. J. Management (2003) 29:533–549Google Scholar
  • Sirower M.The Synergy Trap: How Companies Lose the Acquisition Game (1997) (The Free Press, New York) Google Scholar
  • Slotegraaf R., Moorman C., Inman J. The role of firm resources in returns to market deployment. J. Marketing Res. (2003) 40:295–309CrossrefGoogle Scholar
  • Song M., Droge C., Hanvanich S., Calantone R. Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts. Strategic Management J. (2005) 26:259–276CrossrefGoogle Scholar
  • Stewart J., Harris R., Carleton W. The role of market structure in merger behavior. J. Indust. Econom. (1984) 32:293–312CrossrefGoogle Scholar
  • Stuart T., Podolny J. Local search and the evolution of technological capabilities. Strategic Management J. (1996) 17:21–38CrossrefGoogle Scholar
  • Szulanski G. The process of knowledge transfer: A diachronic analysis of stickiness. Organ. Behav. Human Decision Processes (2000) 82:9–27CrossrefGoogle Scholar
  • Tanriverdi H., Venkatraman N. Knowledge relatedness and the performance of multibusiness firms. Strategic Management J. (2005) 26:97–119CrossrefGoogle Scholar
  • Teece D. Technology transfer by multinational firms: The resource cost of transferring technological know-how. Econom. J. (1977) 87:242–261Google Scholar
  • Teece D. Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Res. Policy (1986) 15:285–305CrossrefGoogle Scholar
  • Teece D. Capturing value from technological innovation: Integration, strategic partnering, and licensing decisions. Interfaces (1988) 18(3):46–58LinkGoogle Scholar
  • Thompson J. D.Organizations in Action (1967) (McGraw Hill, New York) Google Scholar
  • Uhlenbruck K., Hitt M., Semadeni M. Market value effects of acquisitions involving Internet firms: A resource-based analysis. Strategic Management J. (2006) 27:899–913CrossrefGoogle Scholar
  • Varaiya N., Ferris K. Overpaying in corporate takeovers: The winner's curse. Financial Analysts J. (1987) 43:64–73CrossrefGoogle Scholar
  • Vermeulen F., Barkema H. Learning through acquisitions. Acad. Management J. (2001) 44:457–476CrossrefGoogle Scholar
  • Veugelers R. Internal R&D expenditures and external technology sourcing. Res. Policy (1997) 26:303–315CrossrefGoogle Scholar
  • Wernerfelt B. Umbrella branding as a signal of new product quality: An example of signaling by posting a bond. RAND J. Econom. (1988) 19:458–466CrossrefGoogle Scholar
  • Williams A., Siegel D. Event studies in management research: Theoretical and empirical issues. Acad. Management J. (1997) 40:626–657CrossrefGoogle Scholar
  • Williamson O.Markets and Hierarchies: Analysis and Antitrust Implications. A Study of the Economics of Internal Organization (1975) (The Free Press, New York) Google Scholar
  • Wolpert J. Breaking out of the innovation box. Harvard Bus. Rev. (2002) 80(8):76–83Google Scholar
  • Zahra S. Technology strategy and performance: Examining the moderating role of a firm's competitive environment. J. Bus. Venturing (1996) 11:189–219CrossrefGoogle Scholar
  • Zollo M., Singh H. Deliberate learning in corporate acquisitions: Post-acquisition strategies and integration capability in U.S. bank mergers. Strategic Management J. (2004) 25:1233–1256CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.