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Impact of Information Technology Infrastructure Flexibility on Mergers and Acquisitions

Author

Listed:
  • Jose Benitez

    (ESC [Rennes] - ESC Rennes School of Business)

  • Gautam Ray
  • Jörg Henseler

    (ULISBOA - Universidade de Lisboa = University of Lisbon)

Abstract

Although mergers and acquisitions (M&A) are a common strategy to reduce costs and pursue growth, the variance in returns from M&A is very high. This research examines how information technology (IT) infrastructure flexibility affects M&A. We use a combination of secondary as well as matched-pair survey data from 100 mid-size firms in Spain to investigate this relationship. The empirical analysis suggests that IT infrastructure flexibility affects M&A through two key pathways: a flexible IT infrastructure facilitates the development of business flexibility that provides the responsiveness to seize M&A opportunities and make acquisitions, and a flexible IT infrastructure facilitates the development of post-M&A IT integration capability that provides the control to integrate the IT and business resources of the acquired firm and realize the economic benefits from M&A.

Suggested Citation

  • Jose Benitez & Gautam Ray & Jörg Henseler, 2018. "Impact of Information Technology Infrastructure Flexibility on Mergers and Acquisitions," Post-Print hal-01998000, HAL.
    • Handle: RePEc:hal:journl:hal-01998000
    DOI: 10.25300/MISQ/2018/13245
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    Cited by:

    1. Florian Schuberth, 2021. "Confirmatory composite analysis using partial least squares: setting the record straight," Review of Managerial Science, Springer, vol. 15(5), pages 1311-1345, July.
    2. Chen, Meng & Tang, Xinlin & Liu, Hefu & Gu, Jibao, 2023. "The impact of supply chain concentration on integration and business performance," International Journal of Production Economics, Elsevier, vol. 257(C).
    3. Dirk Schneckenberg & Jose Benitez & Christoph Klos & Vivek Velamuri & Patrick Spieth, 2021. "Value creation and appropriation of software vendors: A digital innovation model for cloud computing," Post-Print hal-03329065, HAL.
    4. Manis, K.T. & Madhavaram, Sreedhar, 2023. "AI-Enabled marketing capabilities and the hierarchy of capabilities: Conceptualization, proposition development, and research avenues," Journal of Business Research, Elsevier, vol. 157(C).
    5. Ali Hussein Hadi & Ghassan Rashad Abdulhameed & Yasir Sahib Malik & Hakeem Hammood Flayyih, 2023. "The influence of information technology (IT) on firm profitability and stock returns," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 4(13 (124)), pages 87-93, August.
    6. Nelson Oliveira Stefanelli & Charbel José Chiappetta Jabbour & Lara Bartocci Liboni Amui & Jorge Henrique Caldeira de Oliveira & Hengky Latan & Pascal Paillé & Martin Hingley, 2021. "Unleashing proactive low‐carbon strategies through behavioral factors in biodiversity‐intensive sustainable supply chains: Mixed methodology," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2535-2555, July.
    7. Lingfeng Dong & Ting Ji & Gan Zhou & Jie Zhang, 2022. "Subjective Norms or Psychological Empowerment? Moderation Effect of Power Distance on Knowledge Sharing," Sustainability, MDPI, vol. 14(21), pages 1-15, November.
    8. Qiong Jia & Liyuan Wei & Xiaotong Li, 2019. "Visualizing Sustainability Research in Business and Management (1990–2019) and Emerging Topics: A Large-Scale Bibliometric Analysis," Sustainability, MDPI, vol. 11(20), pages 1-37, October.
    9. Ballestar, María Teresa & Díaz-Chao, Ángel & Sainz, Jorge & Torrent-Sellens, Joan, 2021. "Impact of robotics on manufacturing: A longitudinal machine learning perspective," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    10. Lin, Shunzhi & Lin, Jiabao, 2023. "How organizations leverage digital technology to develop customization and enhance customer relationship performance: An empirical investigation," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    11. Lin, Hsiu-Fen, 2022. "IT resources and quality attributes: The impact on electronic green supply chain management implementation and performance," Technology in Society, Elsevier, vol. 68(C).
    12. Juliet Orji, Ifeyinwa & Ojadi, Frank & Kalu Okwara, Ukoha, 2022. "The nexus between e-commerce adoption in a health pandemic and firm performance: The role of pandemic response strategies," Journal of Business Research, Elsevier, vol. 145(C), pages 616-635.
    13. Hussain, Matloub & Papastathopoulos, Avraam, 2022. "Organizational readiness for digital financial innovation and financial resilience," International Journal of Production Economics, Elsevier, vol. 243(C).
    14. Fernandes, Kiran Jude & Milewski, Simon & Chaudhuri, Atanu & Xiong, Yu, 2022. "Contextualising the role of external partnerships to innovate the core and enabling processes of an organisation: A resource and knowledge-based view," Journal of Business Research, Elsevier, vol. 144(C), pages 146-162.
    15. Jessica Braojos & Jose Benitez & Javier Llorens & Laura Ruiz, 2020. "Impact of IT integration on the firm’s knowledge absorption and desorption," Post-Print hal-03160729, HAL.
    16. Qi Song & Yi Wang & Yang Chen & Jose Benitez & Jiang Hu, 2019. "Impact of the usage of social media in the workplace on team and employee performance," Post-Print hal-02159305, HAL.
    17. Kalaitzi, Dimitra & Tsolakis, Naoum, 2022. "Supply chain analytics adoption: Determinants and impacts on organisational performance and competitive advantage," International Journal of Production Economics, Elsevier, vol. 248(C).
    18. Jörg Henseler, 2018. "Partial least squares path modeling: Quo vadis?," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 1-8, January.
    19. Pepple, Dennis & Makama, Christine & Okeke, John-Paul, 2022. "Knowledge management practices: A public sector perspective," Journal of Business Research, Elsevier, vol. 153(C), pages 509-516.
    20. Henseler, Jörg & Schuberth, Florian, 2020. "Using confirmatory composite analysis to assess emergent variables in business research," Journal of Business Research, Elsevier, vol. 120(C), pages 147-156.
    21. Jessica Braojos & Jose Benitez & Javier Llorens, 2019. "How do social commerce-IT capabilities influence firm performance? Theory and empirical evidence," Post-Print hal-02057780, HAL.
    22. Huang, Jiashun & Li, Weiping & Guo, Lijia & Hall, Jim W., 2022. "Information and communications technology infrastructure and firm growth: An empirical study of China's cities," Telecommunications Policy, Elsevier, vol. 46(3).
    23. Jose Benitez & Laura Ruiz & Ana Castillo & Javier Llorens, 2020. "How corporate social responsibility activities influence employer reputation: The role of social media capability," Post-Print hal-02462583, HAL.
    24. Marko Sarstedt & Christian M Ringle & Jun-Hwa Cheah & Hiram Ting & Ovidiu I Moisescu & Lacramioara Radomir, 2020. "Structural model robustness checks in PLS-SEM," Tourism Economics, , vol. 26(4), pages 531-554, June.
    25. Seles, Bruno Michel Roman Pais & Lopes de Sousa Jabbour, Ana Beatriz & Jabbour, Charbel Jose Chiappetta & Latan, Hengky & Roubaud, David, 2019. "Do Environmental Practices Improve Business Performance Even in an Economic Crisis? Extending the Win-Win Perspective," Ecological Economics, Elsevier, vol. 163(C), pages 189-204.

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