David King

META-ANALYSES OF POST-ACQUISITION PERFORMANCE: INDICATIONS OF UNIDENTIFIED MODERATORS

David R. King et al. — Sun, 02 Jan 2011 13:26:26 PST

Empirical research has not consistently identified antecedents for predicting post-acquisition performance. We employ meta-analytic techniques to empirically assess the impact of the most commonly researched antecedent variables on post-acquisition performance. We find robust results indicating that, on average and across the most commonly studied variables, acquiring firms’ performance does not positively change as a function of their acquisition activity, and is negatively affected to a modest extent. More importantly, our results indicate that unidentified variables may explain significant variance in post-acquisition performance, suggesting the need for additional theory development and changes to M&A research methods

Generating Opportunity from Uncertainty

David King — Sun, 02 Jan 2011 13:26:25 PST

: Learning to deal with uncertainty makes organizations more robust. Leaders can take steps to help their organizations take advantage uncertainty. When continued success transitions from informed decision to luck, small differences in the ability of organizations to handle uncertainty can have a large impact. An example from military history is used to outline current day lessons for military and business leaders.

R&D Investment Level and Environment as Predictors of Firm Acquisition

Michael Heeley et al. — Sun, 02 Jan 2011 13:26:25 PST

R&D investments contribute to the development of firm technology resources, and the possession of such resources often increases a firm’s attractiveness as a potential acquisition target. However, the value ascribed to a firm’s technology resources by would-be acquirers may be moderated by its industry’s environmental characteristics. Using data from 2886 firms, we find that investments in R&D predict acquisition likelihood and that R&D investments are most strongly associated with acquisition of firms under conditions of high environmental munificence and dynamism. Theoretical and managerial implications are discussed.

The Impact of Augmenting Traditional Instruction with Technology-based, Experiential Exercise

David King et al. — Sun, 02 Jan 2011 13:26:24 PST

Traditional instruction, under an experiential learning model, is neither the sole nor a sufficient means of learning. Learning systems that engage students as contributors to learning offer opportunities for educators. The availability of technology to support experiential exercises represents one opportunity to augment traditional instruction. In a quasi-experiment, traditional-only instruction was compared with traditional instruction augmented with a technology-based, experiential exercise. The two instructional methods were evaluated based on student learning, intended behavior, and satisfaction. Our findings suggest that augmented instruction significantly increased student learning and satisfaction. The implications for students are clear. However, there are also noteworthy implications for faculty.

Balanced Innovation Management

David King — Sun, 02 Jan 2011 13:26:23 PST

The Department of Defense has demonstrated success in managing innovation. The military’s approach to innovation management extends beyond traditional distinctions between internal and external innovation modes. Summarizing specific innovation strategies available to managers develops recognition of this growing reality. The article concludes with resulting lessons that can be more widely adopted by managers.

The American Aircraft Industrial Base: On the Brink

David King — Sun, 02 Jan 2011 13:26:23 PST

An article reviewing the decline in the American aircraft industrial base.

Saavy Program Management

David King — Sun, 02 Jan 2011 13:26:22 PST

A program manager’s performance often equates to the ability to influence others in getting something done, or a program manager’s political skill. While politics has a negative connotation, it is more productive to accept that politics exist and recognize that political skills are often required to get things done. Not being aware of one’s political environment can lead to failure from either being unaware of political agendas or over using power—situations that can be equally ineffective.

Performance implications of firm resource interactions in the acquisition of R&D-intensive firms

David King et al. — Sun, 02 Jan 2011 13:26:22 PST

We explore the role of resource interactions in explaining firm performance in the context of acquisitions. While we confirm that acquisitions do not lead to higher performance on average, we do identify that complementary resource profiles in target and acquiring firms are associated with abnormal returns. Specifically, we find that the interaction between acquiring firm marketing resources and target firm technology resources positively reinforce (complement) each other. Meanwhile, the interaction of acquiring and target firm technology resources negatively reinforce (substitute) one another. Implications for management theory and practice are identified.

Strategic Asset Allocation for Individual Investors: The Impact of the Present Value of Social Security Benefits

Steve Fraser et al. — Sun, 02 Jan 2011 13:26:21 PST

This paper demonstrates the dramatic effect of social security wealth on individuals’ asset allocation. We first discuss why social security wealth should be included in portfolio asset-mix decisions. We then draw parallels between social security benefits and inflation-indexed treasury bonds to help quantify the present value of social security benefits. Finally, we show the portfolio impact of including social security wealth under several asset-mix decision rules. Excluding social security wealth from the asset mix decision results in sub-optimal portfolios. Including social security wealth provides an incentive for including more stock in the asset mix.

An Initial Look at Technology and Institutions on Defense Industry Consolidation

John Driessnack et al. — Sun, 02 Jan 2011 13:26:20 PST

Conventional wisdom holds that defense industry consolidation resulted from decreased defense spending. However, we maintain that understanding dynamic changes in key defense institutions helps provide a more complete explanation for observed consolidation. Specifically, we examine the interaction of evolving technology and changing institutions. Institutions reviewed include procurement policies, weapons requirements process and the procurement organizations. We take an initial look at the industry and highlight how these changes influenced transaction costs in the defense industry more fully explain the forces driving consolidation and provide greater insight to policy makers seeking to improve the performance of the defense industry. Further research is needed to build a robust institutional framework of the defense industry and the related government agencies to allow better policy prescriptions.

Complementary Resources and the Exploitation of Technological Innovations

David King et al. — Sun, 02 Jan 2011 13:26:20 PST

Technological innovation often results when the resources of a small firm are combined with those of a large one. This is because small and large firms characteristically possess complementary resources whose combination can facilitate innovation success. The possession of complementary innovation-producing resources by small and large firms helps explain patterns of interaction among firms in dynamic, technology-based industries. Propositions are developed that outline how typical resources of small and large firms can be used to explain industry-level phenomena surrounding technological change.

Analysis of Competition in the Defense Industrial Base: An F/A-22 Case Study

David King et al. — Sun, 02 Jan 2011 13:26:19 PST

Consolidation of the defense industrial base has led to concerns about whether enough competition exists between remaining firms to maintain needed cost reduction and innovation. We examine competition in the U.S. defense industrial base by performing an in-depth case study of Lockheed Martin and the F-22 program that considers multiple tiers of the industrial base. We find that defense firm specialization has led to outsourcing practices and arguably a more robust U.S. defense industrial base. Implications for government policy are identified.

Reducing causal ambiguity in acquisition integration: Intermediate goals as mediators of integration decisions and acquisition performance

Margaret Cording et al. — Sun, 02 Jan 2011 13:26:18 PST

Integration is a difficult process, but one that is vital to acquisition performance. One reason acquirers encounter difficulties is that the integration process exhibits high levels of intrafirm linkage ambiguity – a lack of clarity of the causal link between integration decisions and their performance outcomes. We introduce the construct of intermediate goals as a mechanism that reduces intrafirm linkage ambiguity. Our structural model results, based on a sample of 129 horizontal acquisitions, indicate that the achievement of two intermediate goals (internal reorganization and market expansion) fully mediates the relationships between four integration decisions and acquisition performance.