Learning Through Acquisitions

Experience, environment, and subsidiary performance in high-tech MNEs

“…However, empirical studies of experience and performance yield inconsistent findings. Some studies find that experience enhances performance (e.g., Delios and Beamish, 2001;Miller and Eden, 2006;Uhlenbruck, 2004), whereas others report mixed results between experience and performance (e.g., Emden et al, 2005;King and Tucci, 2002;Meschi and Metais, 2006;Meschi, 2004;Reuer and Zollo, 2005;Thomas et al, 2007;Vermeulen and Barkema, 2001). The inconsistent results may relate to different methods of modeling the relationship between experience and performance.…”

Learning by doing: Cross-border mergers and acquisitions

“…Cognitive theories propose a similar relationship, because organizational mindsets or ideologies affect thinking within a firm (e.g., Prahalad and Bettis, 1986;Lyles and Schwenk, 1992). Specifically, firms having repeated experiences with M&A activities develop capabilities and historical perspectives related to the M&A process (Vermeulen and Barkema, 2001). In turn, M&As become more automatic in the sense that learned behavior takes a more central role in decision processes.…”

“…Moreover, Vermeulen and Barkema (2001) highlight the importance of learning in the international environment, as cross-border acquisitions are more complex than domestic M&As. Evidence suggests that path dependent learning plays an important role in the M&A process.…”

“…Consequently, we know very little about cross-border acquisitions, and yet their number has been increasing in recent years. Moreover, the existing knowledge on cross-border acquisitions is limited mostly to the acquisition behavior of non-U.S. firms (e.g., Barkema et al, 1996;Seth et al, 2000Seth et al, , 2002Vermeulen and Barkema, 2001). Shimizu et al (2004) argued that because of their increasing popularity as a vehicle for competing in international markets, more theoretical and empirical research on cross-border mergers and acquisitions is necessary.…”

Cross-Border M&A and the Acquirers’ Innovation Performance: An Empirical Study in China

“…For example, some scholars believe that mergers and acquisitions improve corporate innovation performance. M&A can not only effectively shorten the time required for technological innovation and promote economies of scale in research and development, it can also increase the scope of R&D resources within the company and enhance the ability of the company to absorb technology, which will help improve corporate innovation performance [4][5][6]. However, other scholars believe that mergers and acquisitions reduce the company's innovation performance.…”