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Knowing when to acquire: The case of multinational technology firms

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  • Brueller, Nir N.
  • Ellis, Shmuel
  • Segev, Eli
  • Carmeli, Abraham

Abstract

This study examines the effects of timing in high-tech acquisitions by analyzing how deviation from routines affects the value captured by the acquirer as well as the price paid. It examines the context of information and communication technology (ICT) acquisitions in which multinational technology incumbents are known to habitually acquire product-related capabilities to facilitate their entry into new product domains. The paper highlights the role of routines in managing technology acquisitions of multinationals, and tests the hypothesis that smaller deviations in terms of target-maturity and acquisition-timing lead to superior outcomes for acquirers. The findings indicate positive relationships between stricter iterations of routines and superior outcomes. The discussion centers on the theoretical implications of acquisition routines, timing and performance of multinational technology companies.

Suggested Citation

  • Brueller, Nir N. & Ellis, Shmuel & Segev, Eli & Carmeli, Abraham, 2015. "Knowing when to acquire: The case of multinational technology firms," International Business Review, Elsevier, vol. 24(1), pages 1-10.
    • Handle: RePEc:eee:iburev:v:24:y:2015:i:1:p:1-10
    DOI: 10.1016/j.ibusrev.2014.06.006
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    3. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.

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