Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive FirmsOrganization Science
Format of Original14 p.
PublisherINFORMS (Institute for Operations Research and Management Sciences)
Original Item IDdoi: 10.1287/orsc.1070.0313
AbstractWe explore the role of resource interactions in explaining firm performance in the context of acquisitions. Although we confirm that acquisitions do not lead to higher performance on average, we do find that complementary resource profiles in target and acquiring firms are associated with abnormal returns. Specifically, we find that acquiring firm marketing resources and target firm technology resources positively reinforce (complement) each other; meanwhile, acquiring and target firm technology resources negatively reinforce (substitute) one another. Implications for management theory and practice are identified.
Citation InformationDavid King, Rebecca J. Slotegraaf and Idalene Kesner. "Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms" Organization Science (2008) ISSN: 1047-7040
Available at: http://works.bepress.com/david_king/28/