Skill Resources Similarity and Post-acquisition Performance of the Acquiring Firms: Role of the Acquiring firms Size

Abebe Shawul Arsedi and Yu Li
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Abebe Shawul Arsedi: Business School, University of International Business and Economics (UIBE), Beijing, China.
Yu Li: Professor, Business School, University of International Business and Economics (UIBE), Beijing, China.

International Journal of Science and Business, 2020, vol. 4, issue 9, 79-100

Abstract: The primary objective of this study is to investigate the effects of the similarity in the skill resources of the merging firms on the post-acquisition performance of the acquiring firms. The study investigates the post-acquisition performance of 313 samples of merger and acquisition transactions completed from 2003 to 2015 by American firms operating in pharmaceutical and biotechnology industry. The study find out that the similarity between the merging firms in the degree of emphasis they give to the marketing activities can lead to a positive post-acquisition performance for the acquiring firms. On the contrary, the similarity between the merging firms in the degree of emphasis given to R&D activities is found to negatively affect the post-acquisition performance of the acquiring firms. In addition, the study find out that the acquirers size positively moderates the relationship between the similarity in the degree of emphasis given to marketing activities by the merging firms and the post-acquisition performance of the acquiring firms. It indicates that larger acquirers have extra resources which they can invest to facilitate the integration and the learning process for the marketing teams of the merging firms to share ideas and knowledge which may positively influence the post-acquisition performance of the acquiring firms.

Keywords: Skill Resources Similarity; Acquirer Size; Acquirer Post-acquisition Performance; R&D Resources; Marketing Resources (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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