Deliberate learning in corporate acquisitions: post‐acquisition strategies and integration capability in U.S. bank mergers
Maurizio Zollo and
Harbir Singh
Strategic Management Journal, 2004, vol. 25, issue 13, 1233-1256
Abstract:
This paper introduces a knowledge‐based view of corporate acquisitions and tests the post‐acquisition consequences on performance of integration decisions and capability‐building mechanisms. In our model, the acquiring firm decides both how much to integrate the acquired firm and the extent to which it replaces this firm's top management team. It can also learn to manage the post‐acquisition integration process by tacitly accumulating acquisition experience and explicitly codifying it in manuals, systems, and other acquisition‐specific tools. Using a sample of 228 acquisitions in the U.S. banking industry, we find that knowledge codification strongly and positively influences acquisition performance, while experience accumulation does not. Furthermore, increasing levels of post‐acquisition integration strengthen the positive effect of codification. Finally, the level of integration between the two merged firms significantly enhances performance, while replacing top managers in the acquired firm negatively impacts performance, all else being equal. Implications are drawn for both organizational learning theory and a knowledge‐based approach to corporate strategy research. Copyright © 2004 John Wiley & Sons, Ltd.
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (184)
Downloads: (external link)
https://doi.org/10.1002/smj.426
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:bla:stratm:v:25:y:2004:i:13:p:1233-1256
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0143-2095
Access Statistics for this article
More articles in Strategic Management Journal from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().