The Role of Dynamic Capabilities as Drivers of Business Model Innovation in Mergers and Acquisitions of Technology-Advanced Firms

Abstract

Despite the widespread agreement on the importance of dynamic capabilities to the success of mergers and acquisitions, little is known about how these capabilities may contribute to the business model’s innovation of an acquirer. The purpose of the paper is to clarify the role of dynamic capabilities in business model innovation of acquirer’s company in mergers and acquisitions of technology-advanced firms. Empirically, the author examined the role of dynamic capabilities in the transformation of operationalized components of the business model of the two acquirers (Samsung and Microsoft) by means of the acquisition of technology-advanced firms (Harman and LinkedIn) in 2016. Drawing on extensive qualitative data, the author developed a practice-driven model as a practical guide for scholars who have been studying dynamic capabilities and business models, as well as for those who are new to the field. The resulting model advances the discourse on dynamic capabilities. The presented conceptual model encourages practitioners to grasp an exact relationship between the micro-foundations of each perspective. Overall, the paper deepens the conversation at the nexus of dynamic capabilities and business model innovation in pursuing a new customer value proposition in the merger and acquisition processes and thereby exploiting a competitive advantage.

Impact of strategic capabilities on organizational ambidexterity in the commercial banks in Jordan: The mediating role of knowledge management

“…Organisations need diverse interrelated capabilities in all organisational functions to create value for it, where these capabilities difference between organisations according to a lot of internal and external factors (Di Benedetto & Song, 2003). The organisation's capabilities were classified in the second level of competencies hierarchy, where they link between an organisation's resources and competencies, which express an organisation's intangible resources (Čirjevskis, 2019;Javidan, 1998). Organisations seek to incentive building the competitive advantage and growth in the long term by recognising their fundamental capabilities and develop them into strategic capabilities (Seyhan et al, 2017;Teece, 2014).…”

The Impact of Core Technological Capabilities of High-Tech Industry on Sustainable Competitive Advantage

“…Through the examples of Harman, Linkedln, Samsung, and Microsoft, the dynamic capabilities were qualitatively analyzed. However, the amount of data was small, and there was a lack of reliability in the analysis of the original data, especially in the discussion of core technological capabilities [14].…”

The Transition of Samsung Electronics through Its M&A with Harman International

“…Under the Samsung Group umbrella, Samsung SDI was already the world's 6th battery maker for electric cars. This allowed Samsung to sense and forecast customer segments and demand for electric cars [16]. With electronics fueling the new era of the automobile industry, Samsung's advantage is its deep knowledge bases in electronics and its ability to quickly understand, recognize the value and absorb many of the technologies required in the up and coming new era of the automobile industry.…”