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Antecedents of Successful IT M&As

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  • Kangkang Qi

Abstract

In this paper, I examine the antecedents of successful IT M&As. Drawing from several theories from strategic management, I propose several hypotheses about the impact of acquiring firm’s environmental uncertainty, pairwise technology complementarity, product market proximity, and the acquiring firm’s CEO narcissism on combined firm’s post-M&A performance measured by profitability and innovation capability. Empirical results partially support my hypotheses: I find that technological complementarity is positively correlated with both post-merger profitability and innovation capability. CEO narcissism, on the hand, only impacts the profitability measure and there is an inversed U-shape relationship. I also find the positive interaction effect between CEO narcissism and technological complementarity on profitability.

Suggested Citation

  • Kangkang Qi, 2018. "Antecedents of Successful IT M&As," International Business Research, Canadian Center of Science and Education, vol. 11(2), pages 33-43, February.
    • Handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:2:p:33-43
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    References listed on IDEAS

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    More about this item

    Keywords

    M&A; environmental uncertainty; product market proximity; technological complementarity; CEO narcissism; post-M&A performance;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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