Strategic Restructuring and Outsourcing: The Effect of Mergers and Acquisitions and LBOs on Building Firm Skills and Capabilities

Journal of Management

Volumn 21, Issue 5, 1995, Pages 835-859

  Lei, David ^a   Hitt, Michael A ^b  

^a SOUTHERN METHODIST UNIVERSITY   (United States)

^b TEXAS A AND M UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0001047555     PISSN: 01492063     EISSN: 15571211     Source Type: Journal    
DOI: 10.1177/014920639502100502     Document Type: Article

References (80)

1. Badaracco, J. (1991). The knowledge link. Boston, MA: Harvard Business School Press.
2. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17: 99-120.
3. Baysinger, B. & Hoskisson, R.E. (1989). Diversification strategy and R&D intensity in multiproduct firms. Academy of Management Journal, 32: 310-322.
4. Bettis, R. A., Bradley, S. P. & Hamel, G. (1992). Outsourcing and industrial decline. Academy of Management Executive, 6: 7-22.
5. Biggadike, R. (1979). The risky business of diversification. Harvard Business Review, 57: 103-111.
6. Bogue, M.C. & Buffa, E.S. (1986). Corporate strategic analysis. New, York Free Press.
7. Bull, I. (1989). Management performance in leveraged buyouts: An empirical analysis. Pp. 69-94 in Y. Amihud (Ed.), Leveraged management buyouts. Homewood, IL: Dow Jones-Irwin Press.
8. Clark, K.B. & Fujimoto, T. (1990). The power of product integrity. Harvard Business Review, 68(6): 107-118.
9. Cohen, W. & Levinthal, D. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35: 128-152.
10. Contractor, F.J. & Lorange, P. (1988). Why should firms cooperate: The strategy and economic basis for cooperative ventures. In F. J. Contractor & P. Lorange (Eds.), Cooperative strategies in international business. Lexington, MA: Lexington Books.
11. Easterwood, J. & Singer, R. (1989). The impact of LB0 s on strategic directions. California Management Review, 23(1): 30-43.
12. Egelhoff, W.H. (1982). Strategy and structure in multinational corporations: An information processing perspective. Administrative Science Quarterly, 27: 435-458.
13. Franko, L.G. (1989). Global corporate competition: Who’s winning, who’s losing and the R&D factor as one reason why. Strategic Management Journal, 10: 449-474.
14. Graves, S.G. (1988). Institutional ownership and corporate R&D in the computer industry. Academy of Management Journal, 31: 411-428.
15. Gupta, A. & Govindarajan, V. (1984). Business unit strategy, managerial characteristics, and business unit effectiveness at strategy implementation. Academy of Management Journal, 27: 25-41.!
16. Gupta, A. & Govindarajan, V. (1986). Resource sharing among SBUs: Strategic antecedents and administrative implications. Academy of Management Journal, 29: 695-714.
17. Hall, B.H. (1988). The effect of takeover activity on corporate research and development. Pp. 69-96 in A.J. Auerbach (Ed.), Corporate takeovers: Causes and consequences. Chicago, IL: University of Chicago Press.
18. Hall, B.H. (1989). The impact of corporate restructuring on industrial research and development. Working paper 89-129, University of California.
19. Hambrick, D.C. (1987). The top management team: Key to strategic success. California Management Review, 30(l): 88-108.
20. Hambrick, D.C. & Finkelstein, S. (1987). Managerial discretion: A bridge between polar views on organizations. Pp. 369-406 in B.M. Staw & L.L. Cummings (Eds.), Research in organizational behavior, Vol. 9. Greenwich, CT: JAI Press.
21. Hambrick, D.C. & Fukotomi, G.D.S. (1991). The seasons of a CEO’s tenure. Academy of Management Review, 16: 719-742.
22. Hambrick, D.C. & Mason, P. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9: 193-206.
23. Hamel, G. (1991). Competition for competence and interpartner learning within international strategic alliances. Strategic Management Journal, 12(Special Issue): 83-104.
24. Hamel, G., Doz, Y.L. & Prahalad, C.K. (1989). Collaborate with your competitors and win. Harvard Business Review, 67(l): 133-139.
25. Hamel, G. & Prahalad, C.K. (1989). Strategic intent. Harvard Business Review, 67(3): 63-76.
26. Hansen, G. & Hill, C.W.L. (1991). Are institutional investors myopic: A time-series study of four technology-driven industries. Strategic Management Journal, 12 1-16.
27. Harrigan, K.R. (1985. Strategies for joint ventures. Lexington, MA: Lexington Books.
28. Haspeslagh, P. (1982). Portfolio planning: Uses and limits. Harvard Business Review, 60(l): 58-73.
29. Haspeslagh, P. & Jemison, D. (1991). Managing acquisitions: Creating value through corporate renewal. New York: Free Press.
30. Hayes, R. & Abernathy, S.J. (1980). Managing our way to economic decline. Harvard Business Review, 58(4): 67-77.
31. Hill, C.W.L., Hitt, M.A. & Hoskisson, R.E. (1988). Declining U.S. competitiveness: Reflections on a crisis. Academy of Management Executive, 2: 51-60.
32. Hill, C.W.L. & Snell, S.A. (1989). Effects of ownership structure and control on corporate productivity. Academy of Management Journal, 32: 25-46.
33. Hitt, M.A., Hoskisson, R.E. & Harrison, J.S. (1991). Strategic competitiveness in the 1990s: Challenges and opportunities for U.S. executives. Academy of Management Executive, 5: 7-22.
34. Hitt, M.A., Hoskisson, R.E. & Ireland, R.D. (1990). Mergers and acquisitions and managerial commitment to innovation. Strategic Management Journal, 11(Special Issue): 29-47.
35. Hitt, M.A., Hoskisson, R.E., Ireland, R.D. and Harrison, J.S. (1991a). Effects of acquisitions on R&D inputs and outputs. Academy of Management Journal, 34: 693-706.
36. Hitt, M.A., Hoskisson, R.E., Ireland, R.D. and Harrison, J.S. (1991b). Are acquisitions a poison pill for innovation? Academy of Management Executive, 5: 22-34.
37. Hitt, M.A., Hoskisson, R.E. & Nixon, R.D. (1993). A midrange theory of interfunctional integration, its antecedents and outcomes. Journal of Engineering and Technology Management, 10: 161-185.
38. Hitt, M.A., Tyler, B.B., Hardee, C. & Park, D. (1995). Understanding strategic orientations: Formula for competitive advantage in global markets. Academy of Management Executive, 9: 12-19.
39. Hopkins, H.D. (1987). Long-term acquisition strategies in the U.S. economy. Journal of Management, 31: 551-572.
40. Hoskisson, R.E. & Hitt, M.A. (1988). Strategic control systems and relative R&D investment in large multiproduct firms. Strategic Management Journal, 9: 605-621.
41. Hoskisson, R.E. & Hitt, M.A. (1994). Downscoping: How to tame the diversified firm. New York: Oxford University Press.
42. Hoskisson, RX., Hitt, M.A. & Hill, C.W.L. (1991). Managerial risk taking in diversified firms: An evolutionary perspective. Organization Science, 4: 296-314.
43. Itami, H. (1987). Managing invisible assets. Cambridge, MA: Harvard University Press.
44. Jemison, D. & Sitkin, S. (1986). Corporate acquisitions: A process perspective. Academy of Management Review, 11: 145-163.
45. Jensen, M.C. (1988). Takeovers: Their causes and consequences. Journal of Economic Perspectives, 2: 21-48.
46. Katz, R. (1982). The effects of group longevity on project communication and performance. Administrative Science Quarterly, 27: 81-104.
47. Kogut, B. (1988). Joint ventures: Theoretical and empirical perspectives. Strategic Management Journal, 9: 319-332.
48. Lee, D. & Allen, T. (1982). Integrating new technical staff: Implications for acquiring new technology. Management Science, 28: 1405-1420.
49. Lei, D. & Slocum, J.W. Jr. (1992). Global strategy, competence-building and strategic alliances, California Management Review, 35(1): 81-97.
50. Long, W. & Ravenscraft, D. (1993). LBOs, debt and R&D intensity. Strategic Management Journal, 14(Special Issue): 119-135.
51. Lubatkin, M. (1987). Merger strategies and shareholder value. Strategic Management Journal, 8: 39-53.
52. Lubatkin, M. & Rogers, R.C. (1989). Diversification, systematic risk, and shareholder return: A capital market extension of Rumelt’s study. Academy of Management Journal, 32: 454-465.
53. Magowan, P. (1989). The case for LBOs: The Safeway experience. California Management Review, 23(1): 9-19.
54. Michel, J.G. & Hambrick, D.C. (1992). Diversification posture and top management team characteristics. Academy of Management Journal, 35: 9-31.
55. Miller, D., Kets de Vries, M.F.R. & Toulouse, J.M. (1982). Top executive locus of control and its relationship to strategy making, structure and environment. Academy of Management Journal, 25: 237-253.
56. Myers, R.L. (1984). Lowering barriers to innovation. Journal of Business Strategy, 5: 80-82.
57. Murray, A.I. (1989). Top management group heterogeneity and firm performance. Strategic Management Journal, 10(Specia1 Issue): 125-141.
58. Nelson, R. & Winter, S. (1982). An evolutionary theory of economic change. Cambridge, MA: Belknap Press.
59. Opler, T. (1992). Operating performance in leveraged buyouts: Evidence from 1985-1989. Financial Management, 2Z(1): 21-34.
60. Pfeffer, J. & Salancik, G.R. (1978). The external control of organizations: A resource dependence perspective. New York: Harper and Row.
61. Pitts, R.A. (1977). Strategies and structures for diversification. Academy of Management Journal, 20: 47-57.
62. Porter, M.E. (1985). Competitive advantage. New York: Free Press.
63. Porter, M.E. (1987). From competitive advantage to corporate strategy. Harvard Business Review, 65(3): 43-59.
64. Prahalad, C.K. & Hamel G. (1990). The core competence of the corporation. Harvard Business Review, 68(3): 79-93.
65. Rappaport, A. (1978). Executive incentives vs. corporate growth. Harvard Business Review, 56(3): 28-46.
66. Reed, R. & DeFillippi, R.J. (1990). Causal ambiguity, barriers to imitation, and sustainable competitive advantage. Academy of Management Review, 15: 88-102.
67. Reich, R. & Mankin, E.G. (1986). Joint ventures with Japan give away our future. Harvard Business Review, 64(2): 78-90.
68. Roll, R. (1986). The hubris hypothesis of corporate takeovers. Journal of Business, 59: 197-216.
69. Salter, M. & Weinhold, W.G. (1979). Diversification through acquisitions. New York: Free Press.
70. Singh, H. (1990). Management buyouts: Distinguishing characteristics and operating changes prior to public offering. Strategic Management Journal, 11(Specia1 Issue): 111-131.
71. Singh, H. & Montgomery, C.A. (1987). Corporate acquisition strategy and economic performance. Strategic Management Journal, 8: 317-386.
72. Singh, H. & Harantio, F. (1989). Top management tenure, corporate ownership structure and the magnitude of golden parachutes. Strategic Management Journal, 10(Special Issue): 143-156.
73. Smart, D.L. & Hitt, M.A. (1994). A mid-range theory regarding the antecedents of restructuring types: An integration of agency, upper echelon and resource-based perspectives. Pp. 159-186 in P. Shrivastava, A. Huff & J. Dutton (Eds.), Advances in strategic management, Vol. 10. Greenwich, CT: JAI Press.
74. Smith, A. (1990). The effects of leveraged buyouts. Business Economics, 25(2): 19-25.
75. Thompson, J.D. (1967). Organizations in action. New York: McGraw-Hill.
76. Thorelli, H.B. (1988). Networks: Between markets and hierarchies. Strategic Management Journal, 7: 37-51.
77. Walsh, J.P. (1988). Top management turnover following mergers and acquisitions. Strategic Management Journal, 9: 173-183.
78. Walsh, J.P. (1989). Doing a deal: Merger and acquisition negotiations and their impact upon target company top management turnover. Strategic Management Journal, 10: 307-322.
79. Williamson, D.E. (1985). The economic institutions of capitalism. New York: Free Press.
80. Zahra, S.A. & Fescina, M. (1991). Will leveraged buyouts kill U.S. corporate research and development? Academy of Management Executive, 5: 7-21.