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Competence: A Dynamic Extension of the Existing Typology of Acquisition Motives

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Author Info
Gammelgaard, Jens (Department of International Economics and Management, Copenhagen Business School)
Abstract

What is the reason for acquisitions? Till now, strategies related to the daily operations of the firm like increased

sale, reduced cost or managerial ambitions have been the prevalent motive. However, a new dynamic motive, the

competence explanation is emerging. The purpose of this paper is to develop the existing typology on

acquisition motives with a combined approach of competence, resource -based and network theories. The new

motive of acquisitions is to acquire firms that posses core competencies. The main purpose of the acquisition is

to transfer and utilize unique knowledge from the new subsidiary in the multinational corporation.

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File URL: http://ep.lib.cbs.dk/download/ISBN/x646013253
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Publisher Info
Paper provided by Copenhagen Business School, Department of International Economics and Management in its series Working Papers with number 12-1999.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 18 pages
Date of creation: 30 May 1999
Date of revision:
Handle: RePEc:hhb:cbsint:1999-012

Contact details of provider:
Postal: Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, DK-2000 Frederiksberg, Denmark
Phone: +45 3815 2515
Fax: +45 3815 2500
Web page: http://www.cbs.dk/departments/int/
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Related research
Keywords: acquisitions strategy management competence multinational corporations

References listed on IDEAS
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  1. Lewellen, Wilbur G, 1971. "A Pure Financial Rationale for the Conglomerate Merger," Journal of Finance, American Finance Association, vol. 26(2), pages 521-37, May. [Downloadable!] (restricted)
  2. Gilbert, Richard J & Newbery, David M, 1992. "Alternative Entry Paths: The Build or Buy Decision," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 1(1), pages 129-50, Spring.
  3. Roll, Richard, 1986. "The Hubris Hypothesis of Corporate Takeovers," Journal of Business, University of Chicago Press, vol. 59(2), pages 197-216, April. [Downloadable!] (restricted)
  4. Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73, pages 351. [Downloadable!] (restricted)
  5. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May. [Downloadable!] (restricted)
  6. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October. [Downloadable!] (restricted)
  7. Mueller, Dennis C, 1969. "A Theory of Conglomerate Mergers," The Quarterly Journal of Economics, MIT Press, vol. 83(4), pages 643-59, November. [Downloadable!] (restricted)
  8. Shleifer, Andrei & Vishny, Robert W., 1989. "Management entrenchment : The case of manager-specific investments," Journal of Financial Economics, Elsevier, vol. 25(1), pages 123-139, November. [Downloadable!] (restricted)
  9. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-96, September. [Downloadable!] (restricted)
  10. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April. [Downloadable!] (restricted)
  11. Marris, Robin & Mueller, Dennis C, 1980. "The Corporation, Competition, and the Invisible Hand," Journal of Economic Literature, American Economic Association, vol. 18(1), pages 32-63, March. [Downloadable!] (restricted)
  12. Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73, pages 110. [Downloadable!] (restricted)
  13. Gort, Michael, 1969. "An Economic Disturbance Theory of Mergers," The Quarterly Journal of Economics, MIT Press, vol. 83(4), pages 624-42, November. [Downloadable!] (restricted)
  14. Yakov Amihud & Baruch Lev, 1981. "Risk Reduction as a Managerial Motive for Conglomerate Mergers," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 605-617, Autumn. [Downloadable!] (restricted)
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