The Role of Acquisitions in Reshaping Business Capabilities in the International Telecommunications Industry

Laurence Capron and Will Mitchell

Industrial and Corporate Change, 1998, vol. 7, issue 4, 715-30

Abstract: This paper focuses on the relationships between observed processes of post-acquisition activities within four cross-border horizontal acquisitions that occurred in the telecommunications equipment manufacturing sector between 1988 and 1992. We discuss the desirability of such acquisitions from a corporate and social welfare standpoint. We report a detailed survey of the context, post-acquisition activities and outcomes of the four acquisitions. The acquisition context includes industry characteristics, target characteristics, target strengths and acquisition motives. Post-acquisition activities include several dimensions of business restructuring, resource redeployment and creation of integration mechanisms. Acquisition outcomes include impact on business capabilities, financial performance and judgments of overall success. We conclude that the results provide stronger support for strategic reconfiguration and productive efficiency explanations for horizontal acquisitions than they do for market power, target mismanagement or resource appropriation explanations. Copyright 1998 by Oxford University Press.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (11)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:7:y:1998:i:4:p:715-30

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().