Transfer Effects in Large Acquisitions: How Size-Specific Experience Matters

Ellis, Kimberly M.; Reus, Taco H.; Lamont, Bruce T.; Ranft, Annette L.

doi:10.5465/amj.2009.0122

Cited by 144 publications

(167 citation statements)

References 66 publications

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“…As postulated by several researchers (e.g. Barkema and Schijven 2008b;Ellis et al 2011), these mixed results indicate that ''researchers need to dig deeper'' (Barkema and Schijven 2008b: 595).…”

Section: Introductionmentioning

confidence: 81%

“…In order to answer these questions, prior research studies have analyzed the transfer effects of organizational learning (e.g. Ellis et al 2011;Finkelstein and Haleblian 2002).…”

Section: Transfer Effectsmentioning

confidence: 99%

“…Yelle 1979). However, diverse empirical research studies have shown that the principle of learning-curve theory cannot be transferred one-to-one to complex strategic management settings (Ellis et al 2011;Finkelstein and Haleblian 2002;Haleblian and Finkelstein 1999;Hayward 2002;Zollo 2009; see Barkema and Schijven 2008b for an overview of research on organizational learning in acquisition settings). The results of prior empirical studies show evidence that in strategic management settings, as against manufacturing settings, learning relates to the quality rather than to the quantity of experience (Hayward 2002).…”

Section: Transfer Effectsmentioning

confidence: 99%

“…Intuitively, one would expect that acquirers with more transactions experience would better manage the challenges coming along with acquisitions and, therefore, obtain a higher performance than inexperienced acquirers. However, prior empirical studies analyzing the relationship between acquisition experience and acquisition performance have been mixed, ranging from positive (Barkema et al 1996) via U-shaped (Haleblian and Finkelstein 1999) and inverted U-shaped (Hayward 2002) to negative results (Uhlenbruck et al 2006) (see Barkema and Schijven 2008b; as well as Ellis et al 2011 for an overview). As postulated by several researchers (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…Prior empirical studies analyzing the performance effects of serial acquisitions generally pursue two variant key topics: the effect of time or more specifically acquisition patterns (Klarner and Raisch 2013;Laamanen and Keil 2008;Prescott 2011, 2012;see Shi et al 2012 for an overview) and the role of experience on learning effects (Ellis et al 2011;Finkelstein and Haleblian 2002;Haleblian and Finkelstein 1999;Hayward 2002;Meschi and Métais 2013;Vermeulen and Barkema 2001; see Barkema and Schijven 2008b for an overview). We interconnect these two perspectives by introducing the concept of strategic consistency, which we define in this paper as the coherence of strategic directions of acquisitions within a series.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Lost in transaction? The transfer effect of strategic consistency

Fehre

Kronenwett

Lindstädt

et al. 2015

Bus Res

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Prior empirical studies provide evidence that the learning-curve perspective from manufacturing settings is not directly applicable to strategic management settings. In the latter case learning relates to the quality rather than to the quantity of experience. Regarding the antecedents of organizational learning especially, there are still unanswered questions remaining; for example, the questions what kind of experience has a positive effect on performance and what kind of experience is more of a hindrance than a help. This becomes obvious when looking at acquisitions as examples of strategic management decisions. Results of prior empirical studies analyzing the relationship of acquisition experience and acquisition performance have been mixed. By introducing the concept of strategic consistency, we intend to facilitate a better understanding of the kind of experience necessary for organizational learning. Therefore, we measure the concordance and frequency of change in strategic actions. Employing a sample of 379 acquisition series, we find evidence for a positive transfer effect of strategic consistency within series and, therefore, a positive relationship between strategic consistency and acquisition performance.

show abstract

Section: Introductionmentioning

confidence: 81%

“…In order to answer these questions, prior research studies have analyzed the transfer effects of organizational learning (e.g. Ellis et al 2011;Finkelstein and Haleblian 2002).…”

Section: Transfer Effectsmentioning

confidence: 99%

Section: Transfer Effectsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Lost in transaction? The transfer effect of strategic consistency

Fehre

Kronenwett

Lindstädt

et al. 2015

Bus Res

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show abstract

Configurations of Governance Structure, Generic Strategy, and Firm Size: Opening the Black Box of Value Creation In International Joint Ventures

Merchant

2014

Global Strategy Journal

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To better identify the antecedents of joint venture (JV) performance, we investigate the singular and joint effects of: (1) JV governance structure (shared control; dominant control); and (2) JV competitive strategy (cost leadership; differentiation; hybrid) on stock market expectations of American parents' JV performance. We combine arguments from the JV governance, generic strategy, and organizational studies literatures to delineate the strategy‐structure‐size configurations required for creating superior abnormal returns. In doing so, we also unpack the moderating role of firm size vis‐à‐vis strategy‐performance and structure‐performance relationships. Our efforts contribute to a more sophisticated understanding of the mechanisms for creating shareholder value in American manufacturing firms who participate in international JVs. We generate five hypotheses and find full or partial support for them in our sample of almost 200 international JVs.

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Institutional determinants of ownership positions of foreign acquirers in Africa

Ellis

Lamont

Holmes

et al. 2017

Global Strategy Journal

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Research summary Using unique features of the African context and blending institutional, hostage, and transaction cost theories, we address gaps in our understanding of institutional determinants of ownership position in cross‐border acquisitions (CBAs) in emerging countries. We focus on two traditional institutional determinants: Informal and formal institutional distances between the two firms’ home countries and two determinants that are particularly acute in the African context: the colonial ties between and fractionalization of the two firms’ home countries. We find colonial ties and uncertainty avoidance distance, an indicator of informal institutional distance, are negatively related to ownership position. Conversely, we show that formal institutional distance and the host country's fractionalization positively influence ownership levels, but the latter effect is weakened when acquirers come from more fractionalized home countries. Managerial summary We examine the effects of four institutional factors that influence organizational decision‐making in the African context: (a) its colonial history, (b) differences in informal cultural norms, (c) differences in formal regulatory structures, and (d) ethnic and linguistic diversity within a country on the percentage of equity ownership that foreign acquirers hold in African target firms. Results indicate that this equity position is lower when colonial ties and greater differences in uncertainty avoidance exist between the acquirer's home country and the target African country. Conversely, foreign acquirers’ equity ownership positions are higher when there are greater formal regulatory differences between the two countries and the host country is more ethnically and linguistically diverse, though the latter effect is reduced when the acquirer is from a home country that is also diverse.

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Transfer Effects in Large Acquisitions: How Size-Specific Experience Matters

Cited by 144 publications

References 66 publications

Lost in transaction? The transfer effect of strategic consistency

Lost in transaction? The transfer effect of strategic consistency

Configurations of Governance Structure, Generic Strategy, and Firm Size: Opening the Black Box of Value Creation In International Joint Ventures

Institutional determinants of ownership positions of foreign acquirers in Africa

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