IDEAS home Printed from https://ideas.repec.org/h/tkp/mklp14/257-267.html
   My bibliography  Save this book chapter

Integrating Acquired Resources and Capabilities

Author

Listed:
  • Daniel Degischer

    (MCI Management Center Innsbruck, Austria)

  • Florian Bauer

    (MCI Management Center Innsbruck, Austria)

Abstract

In this paper we investigate the effects of human and task integration with respect to the strategic orientation of target firms. This approach is necessary, as prior empirical research is not univocal about as detrimental or beneficial effects of integration depend rather on the target strategy, structure and culture than on strategic fit. We give empirical evidence from 101 transactions with acquirers from the German speaking part of Europe that if an integration strategy is beneficial or detrimental depends on the strategic exploration and exploitation strategy of targets. While human integration is most beneficial in cases of a solely high strategic exploration or exploitation orientation when the vice versa strategy is rather low, task integration is only beneficial in cases of a low and high combined exploration and exploitation orientations. We conclude that the creation of mutual trust and a shared identity is a precondition for resource sharing and capability transfer. Nonetheless, this transfer is not always necessary to create value.

Suggested Citation

  • Daniel Degischer & Florian Bauer, 2014. "Integrating Acquired Resources and Capabilities," Human Capital without Borders: Knowledge and Learning for Quality of Life; Proceedings of the Management, Knowledge and Learning International Conference 2014,, ToKnowPress.
    • Handle: RePEc:tkp:mklp14:257-267
    as

    Download full text from publisher

    File URL: http://www.toknowpress.net/ISBN/978-961-6914-09-3/papers/ML14-532.pdf
    File Function: full text
    Download Restriction: no
    File URL: http://www.toknowpress.net/ISBN/978-961-6914-09-3/MakeLearn2014.pdf
    File Function: Conference Programme
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rikard Larsson & Sydney Finkelstein, 1999. "Integrating Strategic, Organizational, and Human Resource Perspectives on Mergers and Acquisitions: A Case Survey of Synergy Realization," Organization Science, INFORMS, vol. 10(1), pages 1-26, February.
    2. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    3. Sudipta Basu & LeeSeok Hwang & Ching‐Lih Jan, 1998. "International Variation in Accounting Measurement Rules and Analysts’ Earnings Forecast Errors," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 25(9‐10), pages 1207-1247, November.
    4. Leuz, Christian & Nanda, Dhananjay & Wysocki, Peter D., 2003. "Earnings management and investor protection: an international comparison," Journal of Financial Economics, Elsevier, vol. 69(3), pages 505-527, September.
    5. Gregor Andrade & Mark Mitchell & Erik Stafford, 2001. "New Evidence and Perspectives on Mergers," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 103-120, Spring.
    6. Julian Birkinshaw, 2000. "Managing the Post-acquisition Integration Process: How the Human Iintegration and Task Integration Processes Interact to Foster Value Creation," Journal of Management Studies, Wiley Blackwell, vol. 37, pages 395-425, May.
    7. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    8. Hüseyin Tanriverdi & N. Venkatraman, 2005. "Knowledge relatedness and the performance of multibusiness firms," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 97-119, February.
    9. Julian Birkinshaw & Henrik Bresman & Lars Håkanson, 2000. "Managing the Post‐acquisition Integration Process: How the Human Iintegration and Task Integration Processes Interact to Foster Value Creation," Journal of Management Studies, Wiley Blackwell, vol. 37(3), pages 395-425, May.
    10. Kimberly M. Ellis & Taco H. Reus & Bruce T. Lamont, 2009. "The effects of procedural and informational justice in the integration of related acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 30(2), pages 137-161, February.
    11. Phanish Puranam & Harbir Singh & Saikat Chaudhuri, 2009. "Integrating Acquired Capabilities: When Structural Integration Is (Un)necessary," Organization Science, INFORMS, vol. 20(2), pages 313-328, April.
    12. Srikanth Paruchuri & Atul Nerkar & Donald C. Hambrick, 2006. "Acquisition Integration and Productivity Losses in the Technical Core: Disruption of Inventors in Acquired Companies," Organization Science, INFORMS, vol. 17(5), pages 545-562, October.
    13. Kimberly M. Ellis & Taco H. Reus & Bruce T. Lamont, 2009. "Erratum: The effects of procedural and informational justice in the integration of related acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 30(2), pages 1-1, February.
    14. Linda Argote & Sara L. Beckman & Dennis Epple, 1990. "The Persistence and Transfer of Learning in Industrial Settings," Management Science, INFORMS, vol. 36(2), pages 140-154, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Waseem Bari & Qurrah-tul-ain & Muhammad Abrar & Meng Fanchen, 2022. "Employees’ responses to psychological contract breach: The mediating role of organizational cynicism," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(2), pages 810-829, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Strobl, Andreas & Bauer, Florian & Matzler, Kurt, 2020. "The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions," Journal of World Business, Elsevier, vol. 55(2).
    2. Bauer, Florian & King, David & Matzler, Kurt, 2016. "Speed of acquisition integration: Separating the role of human and task integration," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 150-165.
    3. Khan, Zaheer & Soundararajan, Vivek & Wood, Geoffrey & Ahammad, Mohammad Faisal, 2020. "Employee emotional resilience during post-merger integration across national boundaries: Rewards and the mediating role of fairness norms," Journal of World Business, Elsevier, vol. 55(2).
    4. Wang, Daojuan & Hain, Daniel S. & Larimo, Jorma & Dao, Li T., 2020. "Cultural differences and synergy realization in cross-border acquisitions," International Business Review, Elsevier, vol. 29(3).
    5. Feiqiong Chen & Yao Chen & Fangfang Zhong, 2017. "Integration decision-making in technology-sourcing cross-border M&As: a mathematical model," Computational and Mathematical Organization Theory, Springer, vol. 23(4), pages 524-545, December.
    6. Teerikangas, Satu & Thanos, Ioannis C., 2018. "Looking into the ‘black box’ – unlocking the effect of integration on acquisition performance," European Management Journal, Elsevier, vol. 36(3), pages 366-380.
    7. Bauer, Florian & Matzler, Kurt & Wolf, Stefan, 2016. "M&A and innovation: The role of integration and cultural differences—A central European targets perspective," International Business Review, Elsevier, vol. 25(1), pages 76-86.
    8. Feiqiong Chen & Yin Wang, 2014. "Integration risk in cross-border M&A based on internal and external resource: empirical evidence from China," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 281-295, January.
    9. Colman, Helene Loe, 2020. "Facilitating integration and maintaining autonomy: The role of managerial action and interaction in post-acquisition cabability transfer," Journal of Business Research, Elsevier, vol. 109(C), pages 148-160.
    10. Park, Kathleen Marshall & Meglio, Olimpia & Bauer, Florian & Tarba, Shlomo, 2018. "Managing patterns of internationalization, integration, and identity transformation: The post-acquisition metamorphosis of an Arabian Gulf EMNC," Journal of Business Research, Elsevier, vol. 93(C), pages 122-138.
    11. Bauer, Florian & Schriber, Svante & Degischer, Daniel & King, David R., 2018. "Contextualizing speed and cross-border acquisition performance: Labor market flexibility and efficiency effects," Journal of World Business, Elsevier, vol. 53(2), pages 290-301.
    12. Demir, Robert & Campopiano, Giovanna & Kruckenhauser, Christian & Bauer, Florian, 2021. "Strategic agility, internationalisation speed and international success — The role of coordination mechanisms and growth modes," Journal of International Management, Elsevier, vol. 27(1).
    13. Satu Teerikangas & Olivier Irrmann, 2016. "Cultural Change Following International Acquisitions: Cohabiting the Tension Between Espoused and Practiced Cultures," Management International Review, Springer, vol. 56(2), pages 195-226, April.
    14. Meglio, Olimpia & Risberg, Annette, 2011. "The (mis)measurement of M&A performance—A systematic narrative literature review," Scandinavian Journal of Management, Elsevier, vol. 27(4), pages 418-433.
    15. Uriel Stettner & Dovev Lavie, 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1903-1929, December.
    16. Tamar Almor & Shlomo Y. Tarba & Avital Margalit, 2014. "Maturing, Technology-Based, Born-Global Companies: Surviving Through Mergers and Acquisitions," Management International Review, Springer, vol. 54(4), pages 421-444, August.
    17. Jiang Wei & Yang Yang & Sali Li, 2021. "Mirror or no mirror? Architectural design of cross-border integration of Chinese multinational enterprises," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1399-1430, December.
    18. Günter K. Stahl & Chei Hwee Chua & Amy L. Pablo, 2012. "Does National Context Affect Target Firm Employees’ Trust in Acquisitions?," Management International Review, Springer, vol. 52(3), pages 395-423, June.
    19. Alexandridis, George & Hoepner, Andreas G.F. & Huang, Zhenyi & Oikonomou, Ioannis, 2022. "Corporate social responsibility culture and international M&As," The British Accounting Review, Elsevier, vol. 54(1).
    20. Schweizer, Lars & Patzelt, Holger, 2012. "Employee commitment in the post-acquisition integration process: The effect of integration speed and leadership," Scandinavian Journal of Management, Elsevier, vol. 28(4), pages 298-310.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tkp:mklp14:257-267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maks Jezovnik (email available below). General contact details of provider: http://www.toknowpress.net/proceedings/978-961-6914-09-3/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.