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Article
Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms
Organization Science
  • David King, Marquette University
  • Rebecca J. Slotegraaf, Indiana University - Bloomington
  • Idalene Kesner, Indiana University - Bloomington
Document Type
Article
Language
eng
Format of Original
14 p.
Publication Date
3-1-2008
Publisher
INFORMS (Institute for Operations Research and Management Sciences)
Original Item ID
doi: 10.1287/orsc.1070.0313
Disciplines
Abstract
We 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.
Comments

Published version. Organization Science, Volume 19, No. 2 (March-April 2008), DOI. © INFORMS (Institute for Operations Research and Management Sciences) 2008. Used with permission.

Citation Information
David 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/