Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms

David R. King (), Rebecca J. Slotegraaf () and Idalene Kesner ()
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David R. King: U.S. Air Force, Wright-Patterson AFB, Ohio 45433
Rebecca J. Slotegraaf: Kelley School of Business, Indiana University, Bloomington, Indiana 47405
Idalene Kesner: Kelley School of Business, Indiana University, Bloomington, Indiana 47405

Organization Science, 2008, vol. 19, issue 2, 327-340

Abstract: We explore the role of resource interactions in explaining firm performance in the context of acquisitions. Although we confirm that acquisitions do not lead to higher performance on average, we do find that complementary resource profiles in target and acquiring firms are associated with abnormal returns. Specifically, we find that acquiring firm marketing resources and target firm technology resources positively reinforce (complement) each other; meanwhile, acquiring and target firm technology resources negatively reinforce (substitute) one another. Implications for management theory and practice are identified.

Keywords: merger and acquisition; resource-based view; high technology (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:19:y:2008:i:2:p:327-340

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