A knowledge-based view of mergers and acquisitions revisited: Absorptive capacity and combinative capability
ABSTRACT This chapter revisits central knowledge-based mechanisms that explain variance in value creation through mergers and acquisitions (M&As). It places the organizational capabilities of absorptive capacity and combinative capability in the context of M&As. Absorptive capacity – i.e., the combining firms’ ability to explore new knowledge – relies on the extent of prior related experiences of acquirers and their acquired firms, and available complementary knowledge among the two. Combinative capability – i.e., the combining firms’ ability to combine and recombine available existing knowledge – depends on the opportunity, motivation, and ability to share knowledge. The chapter concludes with several contextual factors that intensify the roles of knowledge, and reveal important contradictory roles in the development and value of absorptive capacity and combinative capability.
|Keywords||Mergers and acquisitions, absorptive capacity, combinative capability, knowledge-based view|
|Publisher||Emerald Group Publishing Limited|
|Persistent URL||dx.doi.org/10.1108/S1479-361X(2012)0000011007, hdl.handle.net/1765/38363|
|Note||In: Sydney Finkelstein, Cary L. Cooper, in (ed.) Advances in Mergers and Acquisitions (Advances in Mergers & Acquisitions, Volume 11), Emerald Group Publishing Limited, pp. 69 - 88|
Reus, T.H. (2012). A knowledge-based view of mergers and acquisitions revisited: Absorptive capacity and combinative capability. Emerald Group Publishing Limited. doi:10.1108/S1479-361X(2012)0000011007