Examining Links between Pre and Post M&amp;A Value Creation Mechanisms — Exploitation, Exploration and Ambidexterity in Central European SMEs

Bauer, Florian; Ströbl, Andreas; Dao, Mai Anh; Matzler, Kurt; Rudolf, Nicole

doi:10.1016/j.lrp.2016.07.002

Cited by 51 publications

(57 citation statements)

References 151 publications

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“…After reminder emails and follow‐up phone calls, 115 usable questionnaires were obtained. The response rate of 15% is adequate and comparable with other surveys in the field (Bauer et al, ). We investigated for nonresponse bias (Armstrong and Overton, ), without finding any problems.…”

Section: Methodssupporting

confidence: 83%

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Exploration outcomes of M&A: the interplay between coordination mechanisms and acquisition experience

Dao

Ströbl

2018

R & D Management

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Post‐acquisition exploration aims at triggering innovation outcomes through newly acquired resources and capabilities. To this end, formal and informal mechanisms contribute to coordinating such exploration goals. As the usefulness of such coordination mechanisms in merger and acquisition (M&A) depends upon transaction experience, we investigate how tacit and explicit acquisition experience influences the outcomes of formal and informal coordination mechanisms on post‐merger exploration. Based on a sample of 115 transactions of German, Austrian, and Swiss acquirers, our results demonstrate that exploration outcomes are fostered through informal coordination mechanisms. Yet the effect is dampened when previous M&A experiences are held tacit. Formal coordination mechanisms show positive influences on post‐acquisition exploration only when acquisition experience is made explicit. In combination with tacit M&A experience, formal coordination has a negative influence. Thus, we contribute to the extant literature by showing which coordination mechanisms can be utilized to foster post‐acquisition exploration and how explicit and tacit M&A experience can be deployed effectively.

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Section: Methodssupporting

confidence: 83%

“…Previous M&A experiences will influence the efficiency and usefulness of the means of post‐merger integration, such as formal and informal coordination mechanisms. Thus, M&A experience moderates M&A integration (Bauer et al, ).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Exploration outcomes of M&A: the interplay between coordination mechanisms and acquisition experience

Dao

Ströbl

2018

R & D Management

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“…The application of both exploration and exploitation in the post‐acquisition integration context can be overly taxing for smaller‐sized firms and therefore detrimental to acquisition performance (Bauer et al, ). Bauer et al (, p. 196) recommend studying the impacts of ambidexterity in acquisitions made by larger organizations. We build on this recommendation with our analysis of a multi‐billion dollar global enterprise engaged in an acquisition program and successfully employing both exploration and exploitation – to varying degrees at varying times in different stages of the acquisition program – to enhance the acquisition of specific technologies and innovations as well as innovative capabilities.…”

Section: Discussionmentioning

confidence: 99%

“…Single acquisitions typically concentrate on one aspect only (King et al, ), while acquisition programs can encompass innovation‐driven exploration and exploitation alike. Studying ambidexterity at the acquisition program level is important because, at the single deal level, pursuing dual capabilities places greater demands on an acquiring firm than if the firm can benefit further from the investment in ambidexterity throughout the course of an innovation‐intensive acquisition program (Bauer et al, ).…”

Section: Innovation Acquisition Programs and Ambidexteritymentioning

confidence: 99%

Playing a double game? Pursuing innovation through ambidexterity in an international acquisition program from the Arabian Gulf Region

Park

Meglio

2019

R & D Management

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Acquisitions represent a strategy for enhancing competitive responsiveness in the global management of technology and innovation. Even more than single and domestic acquisitions, cross‐border acquisition programs present opportunities for firms seeking to sustain innovation. Yet, scant attention has been paid to the innovation dynamics of pursuing multiple, international acquisitions. We remedy this gap by investigating a multinational logistics firm enacting a multi‐decade program of cross‐border, technology intensive acquisitions and achieving dual competencies in (1) innovation and ambidexterity, (2) the exploration and exploitation capabilities of ambidexterity, and (3) tight and loose integration approaches. We determine that the firm relied on contextual, temporal, and structural manifestations of ambidexterity in acquisition integration. Findings illuminate the processual nature of an international acquisition program and suggest how ambidexterity benefits the acquisition of both innovation and innovative capabilities, when a firm applies a portfolio of tight‐to‐loose integration approaches.

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“…Haleblian and Finkelstein [62] discussed the effect of acquisition experience on M&A performance according to the similarity between goals of the past and the present. Bauer et al [63] stated that M&A experience positively influences exploitation and exploration performance. In short, firms with past acquisition experience are more likely to succeed in converting acquired knowledge into innovation.…”

Section: The Acquirer's Manda Experience As Management Capabilitymentioning

confidence: 99%

The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As

2019

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In recent years, technological mergers and acquisitions (M&As) have become important strategic tools for enterprises to access and utilize new external knowledge. In particular, in the biopharmaceutical industry, M&A activities are actively being progressed due to an increase in new drug development costs, a decrease in R&D productivity, and the patent expiration of blockbuster drugs. However, there is a lack of research on the integrated view of (1) the acquirer’s capability and (2) the dyadic relationship of the knowledge base between the acquirer and target on the innovation performance of the acquirer. Furthermore, there are few empirical studies on the impact of these factors on ambidextrous innovation; that is, exploitative and explorative innovation. Therefore, with this integrated view in mind, this study analyzed the effect of each factor on the exploitative and exploratory innovation performance of the acquirer. A negative binomial regression was conducted using patent data to measure the innovation outcome of the acquirer after M&A. The findings suggest that (1) the acquisition experience of the acquirer and (2) the technological commonness between the acquirer and the target both had a significant impact on the exploitation and exploration innovation performance.

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Examining Links between Pre and Post M&A Value Creation Mechanisms — Exploitation, Exploration and Ambidexterity in Central European SMEs

Abstract: Discovering unobserved heterogeneity in structural equation models to avert validity threats. Management Information Systems Quarterly 37 (3), 665-694.

Cited by 51 publications

References 151 publications

Exploration outcomes of M&A: the interplay between coordination mechanisms and acquisition experience

Exploration outcomes of M&A: the interplay between coordination mechanisms and acquisition experience

Playing a double game? Pursuing innovation through ambidexterity in an international acquisition program from the Arabian Gulf Region

The Influence of a Firm’s Capability and Dyadic Relationship of the Knowledge Base on Ambidextrous Innovation in Biopharmaceutical M&As

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