Synergistic Competitive Advantage - The Modern Appeal of RBV and IO Theory in the Mergers and Acquisitions

Arup Barua () and Alexandra Ioanid ()
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Arup Barua: South-Eastern Finland University of Applied Sciences, Finland
Alexandra Ioanid: University Politehnica of Bucharest, Romania

Bulgarian Economic Papers from Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski

Abstract: The Resource-based View (RBV) and Industrial Organization (IO) theory have successfully clarified the competitive advantage for a single firm based on resources and market aspects but less so for knowing the competitive advantage for dual entities or companies. Therefore, this article attempts to investigate how a competitive advantage emerges in post-M&A. It illustrates that both theories together should contemplate the "synergistic competitive advantage" as a measurement of M&A performance, which explains the competitive advantage by the acquisition synergies, e.g., joint sales, expertise, revenue, and cost. The modern thought will widen the joint appeal of RBV and IO theory considering the SCP model because the synergy (i.e., a combined effect of two entities) should be a competitive, and competitive advantage should be synergistic for acquisition success. Future researchers are entreated to test the synergistic competitive advantage in post-M&A, evading the traditional competitive advantage. Decisively the implications and directions of future research would be illuminated.

Keywords: RBV (Resource-based View); IO (Industrial Organization); SCP (Structure; Conduct; Performance); SCA (Synergistic Competitive Advantage); M&As (Mergers and Acquisitions) (search for similar items in EconPapers)
JEL-codes: G34 M16 O19 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2021-07, Revised 2021-07
New Economics Papers: this item is included in nep-com, nep-cse, nep-ind, nep-isf and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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