Purpose
The acquisition of knowledge through mergers and acquisition (M&A) may not create value—usually because the knowledge may not be transferred, or transferred but not integrated. The purpose of this paper to develop and test a theoretical model of knowledge and performance in the M&A process.
Design/methodology/approach
Theory, model and case analysis.
Findings
The literature review led us to distinguish between three main categories of knowledge along the different stages of the M&A process: acquired knowledge in the pre-merger stage; and transferred knowledge and integrated knowledge in the post-merger stage. The application of the model is illustrated in a case study of technology M&A, which includes data collected from annual reports before and after the merger.
Research limitations/implications
The model recommends acknowledging the differences between the acquired knowledge, transferred knowledge and integrated knowledge when examining the relationship between knowledge and performance in M&As. In addition, the model suggests considering several factors that influence future knowledge integration in the pre-merger stage. Ignoring the three categories and the factors may be the reason for the reports of previous studied stating that the acquisition of knowledge-based resources is associated with negative announcement returns to the acquiring firm.
Originality/value
The paper presents new procedures to measure knowledge, collecting data on R&D employees by using annual reports. In addition, the paper suggests adding “in-process R&D” as an “Acquired Knowledge” measure.
The expansion and development of the nonprofit sector worldwide in the 1980s and 1990s did not bypass Israel, and, as in other countries, sparked an interest for study to uncover its characteristics and major features.
The Israeli population—both Jewish and Arab—has a rich tradition of voluntaristic activity on the individual as well as on the collective (organizational) levels, mostly in the communal context. The modern welfare state created new opportunities and new challenges for such activity within the broad framework of the nonprofit sector.
This article aims to review the development of the nonprofit sector in Israel and analyze it within existing nonprofit theories. It takes a historical perspective in looking at its evolution, in light of political, social, ideological, and economic changes in the world and in the country. It discusses the development of policy and government involvement on the one hand and the unique features of Israeli philanthropy, both Jewish and Arab, on the other. It analyzes Israel’s civil society and social movements, as well as social entrepreneurship and their expression in the Third Sector. The article also covers the development of research and education on the Third Sector; it includes a review of research centers, databases, journals, and specific programs that were developed by Israeli universities. Finally, this article summarizes the characteristics of the nonprofit sector in Israel.
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