Acquisition based dynamic capabilities and reinvention of business models:  bridging two perspectives together

Čirjevskis, Andrejs

doi:10.9770/jesi.2017.4.4(9)

Cited by 17 publications

(9 citation statements)

References 8 publications

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“…SME). This observation is in line with some documented studies that regard these capabilities as an M&A's "dynamic capability" ( Cirjevskis, 2017;Helfat and Peteraf, 2003;Helfat et al, 2007;Liu and Deng, 2014;Qiu and Homer, 2018;Wu et al, 2016). Helfat and Peteraf (2003) elaborated that an acquisition-based dynamic capability refers to creating a new resource base and achieving sustainable competitive advantages through identifying industry trends, assessing targets' resources threats and reconstructing targets' developments.…”

Section: The Initial First Year After Acquisition Mid-term the Second To Third Year Long-term The Fourth Year And Beyond Initial Stage Thsupporting

confidence: 80%

Dynamic integration paths of emerging multinational enterprises in advanced markets

Yang

Lütge

2019

RIBS

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Purpose This paper aims to examine dynamic multi-stage post-merger integration (PMI) evolutions by Chinese multinational enterprises (CMNEs) in the German market and their potential influencing factors. Design/methodology/approach A data set was collected from 25 interviews with 21 respondents from six Chinese acquisition cases in Germany, and a comparative multi-case study and content analysis were applied. Findings The results reveal that Chinese acquirers take segmented linear integration path in Germany from nearly no integration to organisational integration and then to production integration. It contains three sub-paths: the P-O-O path (partnering–organisational optimisation–production optimisation), the P-P-P path (preservation–organisational preservation–production preservation) and the P-C-C path (preservation–organisational centralisation–production confusion). The initial nearly no integration condition is mainly impacted by asymmetric information and the targets’ strategic positions, whereas different organisational and production integration degrees in mid- and long-term stages are primarily influenced by Chinese acquirers' different dynamic capabilities. Moreover, Chinese acquirers' corporate ownership is not found to be a significant factor that influences CMNEs to take different integration strategies in different PMI stages. Research limitations/implications This paper contributes to broaden emerging multinational enterprises’ (EMNEs) PMI theory by adding dynamic perspective and provides suggestions for mergers and acquisitions (M&As) practitioners to identify integration options and avoid integration pitfalls in different integration stages. Originality/value Existing works identified that EMNEs prefer to partner with the targets in advanced markets, but lacked a dynamic perspective to disclose whether the partnering strategy would be adjusted or not over time. This study is the first to explore multi-stage integration changes and is one of the few studies that recognise the interaction of the integration strategy with the dynamic capability of the acquiring enterprises.

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Section: The Initial First Year After Acquisition Mid-term the Second To Third Year Long-term The Fourth Year And Beyond Initial Stage Thsupporting

confidence: 80%

Dynamic integration paths of emerging multinational enterprises in advanced markets

Yang

Lütge

2019

RIBS

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“…Recently, scholars adopted a dynamic capability framework "sensing-seizingtransforming" (Teece, 2007) for business analysis purposes, particularly to explore similarities, compatibilities and complementarity in M&A deals ( Cirjevskis, 2017). Thus, the first proposition affirms that the higher the degree of similarities, compatibilities and complementarity between the dynamic capabilities of an acquirer and a target, the better opportunities to exercise a real option on an acquisition of this target and to get synergy.…”

Section: Findings and Discussionmentioning

confidence: 99%

Brazilian Natura & Co: creating cosmetic powerhouse. Empirical evidence of competence-based synergies in M&A processes

Čirjevskis

2020

ARLA

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PurposeThis paper aims to operationalize and to test the ARCTIC (A – Advantage, R – Relatedness, C – Complexity of Competence, T – Time of Integration, I – Implementation Plan, C – Cultural Fit) framework to assess the prerequisites of competence-based synergy in the acquisition process. The current research provides new analyses of recent acquisitions in the global beauty industry where the ARCTIC framework was satisfied and where the ARCTIC model was NOT satisfied by decisive factors to get the acquisition's synergies. It allows readers to contrast two case studies and grasp how the framework works in greater detail.Design/methodology/approachThe current research relies on an extensive archival search that included financial statements, annual reports, internal documents, industry publications and CEO statements to get at a micro-level understanding. This boosts research data and the operationalization of the ARCTIC framework.FindingsThe research identified four steps for investigating whether core competence transfer in an acquisition process would be a source of competence-based synergies. The incorporation of real options into the synergy valuation measures market value-added arising from M&A deals.Originality/valueThe current paper contributes to theoretical and practical issues of global M&As as part of the existing literature of international business and strategic management. The impact on reciprocal synergies of agency problems, external interaction between CEOs in M&A deals, corporate governance systems and an executive compensation theory are promising areas of future research.

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“…With the globalization, there is an increasing number of enterprises go abroad and take various of ways to expand their overseas marker and enhance international competitiveness [19]. Among them, cross-border M&A which act as an important FDI way has attracted highly attention among scholars in the past few years [20,21]. In the prior research of cross-border M&A, many scholars focus on the antecedent and consequence of cross-border M&A from different perspectives, such as enterprise characteristic [22,23], board structure [24], national institutional environment [25,26], culture distance [27], payment method [28] and so on.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Improving Enterprises’ Cross-Border M&A Sustainability in the Globalization Age—Research on Acquisition and Application of the Foreign Experience

Xie

Lin

et al. 2019

Sustainability

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The advancement of globalization has encouraged an increasing number of enterprises to go abroad and take cross-border mergers and acquisitions (M&A) to expand their overseas market and improve core competitiveness, although many acquirers fail to gain value from post-acquisition integration. On the basis of organizational learning theory, this paper explores the effect of executives’ foreign experience on cross-border M&A sustainability, and examines how the externally acquired knowledge can be effectively applied to cross-border M&A practice. Taking a sample of Chinese listed companies that have completed cross-border M&As during 2008–2016, our research proposes an integrated framework of foreign experiential knowledge, and discusses the process of acquisition and application of this experiential knowledge into cross-border M&As. Empirical research findings show that, compared with the general foreign experience, the specific foreign experience based on target country significantly improves cross-border M&A sustainability, and executives with host-specific work experience plays a more important role than that of education experience. Further research found that long-tenured executives positively moderate the effect of foreign experiential knowledge on cross-border M&A sustainability, while the pay gap for executives, which hampers internal coherence, plays a negative moderating role. This research provides a new insight into the promotion of the sustainable development of enterprise cross-border M&A in the globalization age.

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Acquisition based dynamic capabilities and reinvention of business models: bridging two perspectives together

Cited by 17 publications

References 8 publications

Dynamic integration paths of emerging multinational enterprises in advanced markets

Dynamic integration paths of emerging multinational enterprises in advanced markets

Brazilian Natura & Co: creating cosmetic powerhouse. Empirical evidence of competence-based synergies in M&A processes

Improving Enterprises’ Cross-Border M&A Sustainability in the Globalization Age—Research on Acquisition and Application of the Foreign Experience

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