Learning through acquisitions
Research on acquisitions has typically focused on acquisitions per se, examining issues such as performance and implementation problems. This study moves beyond that perspective and studies the influence on a firm's later expansions. The authors argue that exploitation of a firm's knowledge base through 'greenfields' eventually makes a firm simple and inert. In contrast, acquisitions may broaden a firm's knowledge base and decrease inertia, enhancing the viability of its later ventures. Over time, firms strike a balance between the use of greenfields and acquisitions. Various implications of this theory--tested with survival analysis and 'logit' models--were strongly corroborated.
|Keywords||adaptability (psychology), business intelligence, consolidation & merger of corporations, corporate reorganizations, corporations (growth), decision-making, economic aspects, industrial management, knowledge base, management, organizational structure, research, strategic alliances (business), survival analysis (biometry)|
Vermeulen, G.A.M., & Barkema, H.G.. (2001). Learning through acquisitions. Academy of Management Journal, 457–476. Retrieved from http://hdl.handle.net/1765/12821