Market value effects of acquisitions involving internet firms: A resource-based analysis

Strategic Management Journal

Volumn 27, Issue 10, 2006, Pages 899-913

  Uhlenbruck, Klaus ^a   Hitt, Michael A ^b   Semadeni, Matthew ^c  

^a UNIVERSITY OF MONTANA   (United States)

^b TEXAS A AND M UNIVERSITY   (United States)

^c UNIVERSITY OF SOUTH CAROLINA   (United States)

Author keywords

Internet; Market performance; Mergers and acquisitions

Indexed keywords

INDUSTRIAL RESEARCH; INTERNET; MERGERS AND ACQUISITIONS;

MARKET PERFORMANCE; ORGANIZATIONAL LEARNING THEORY; RESOURCE-BASED ANALYSIS;

MARKETING;

EID: 33748935378     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.546     Document Type: Article

References (93)

1. Ahuja G, Katila R. 2001. Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study. Strategic Management Journal 22(3): 197-220.
2. Akerlof GA. 1970. The market for 'lemons': quality uncertainty and the market mechanism. Quarterly Journal of Economics 84(3): 488-500.
3. Amit R, Schoemaker PJH. 1993. Strategic assets and organizational rent. Strategic Management Journal 14(1): 33-46.
4. Amit R, Zott C. 2001. Value creation in e-business. Strategic Management Journal, Special Issue 22(6-7): 493-520.
5. Anand B, Khanna T, Rivkin J. 2000. Market failures. Harvard Business School note #9-700-127.
6. Andrade G, Mitchell M, Stafford E. 2001. New evidence and perspectives on mergers. Journal of Economic Perspectives 15(2): 103-120.
7. Argyres N, McGahan AM. 2002. An interview with Michael Porter. Academy of Management Executive 16(2): 43-52.
8. Aufreiter N, Ouillet PY, Scott MK. 2001. Marketing rules. Harvard Business Review 79(2): 30-31.
9. Baker W, Marn M, Zawada C. 2001. Price smarter on the Net. Harvard Business Review 79(2): 122-127.
10. Bakos Y. 2001. The emerging landscape for retail Ecommerce. Journal of Economic Perspectives 15(1): 69-81.
11. Barney J. 1991. Firm resources and sustained competitive advantage. Journal of Management 17(1): 99-120.
12. Binder JJ. 1998. The event study methodology since 1969. Review of Quantitative Finance and Accounting 11: 111-137.
13. Boehmer E, Musumeci J, Poulsen AB. 1991. Event study methodology under conditions of event induced variance. Journal of Financial Economics 30: 253-272.
14. Bower JL. 2001. Not all M&As are alike - and that matters. Harvard Business Review 79(3): 92-101.
15. Brynjolfsson E, Smith MD. 2000. The great equalizer? Consumer choice behavior at Internet Shopbots. MIT working paper.
16. Callahan CV, Pasternack B A. 1999. Corporate strategy in the digital age. Strategy + Business, 2nd Quarter, http://www.strategy-business.com/press/ article/16544?pg=0 Accessed 23 January 2005.
17. Capron L, Pistre N. 2002. When do acquirers earn abnormal returns? Strategic Management Journal 23(9): 781-794.
18. Carr NG. 2000. Hypermediation: commerce as clickstream. Harvard Business Review 78(1): 46-47.
19. Caves RD. 1981. Diversification and seller concentration: evidence from change, 1963-1972. Review of Economics and Statistics 63: 289-293.
20. Christensen CM. 1997. The Innovator's Dilemma. Harvard Business School Press: Boston, MA.
21. Cohen WM, Levinthal DA. 1990. Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly 35: 128-152.
22. Cowan AR. 2000. Eventus: software for event studies and CRSP data retrieval (6.3 edn). Cowan Research LC: Aimes, IA.
23. Cronin MJ. 2000. Unchained Value: The New Logic of Digital Business. Harvard Business School Press: Boston, MA.
24. Datta DK, Narayanan VK, Pinches GE. 1992. Factors influencing wealth creation from mergers and acquisitions: a meta analysis. Strategic Management Journal 13(1): 67-84.
25. Dierickx I, Cool K. 1989. Asset stock accumulation and ustainability of competitive advantage. Management Science 35: 1504-1513.
26. Economist. 2000. Europe's dot.bombs. 3 August.
27. Economist. 2001. Internet pioneers: we have lift-off. 3 February: 69-72.
28. Eisenhardt KM, Martin JA. 2000. Dynamic capabilities: what are they? Strategic Management Journal, Special Issue 21(10-11): 1105-1121.
29. Elfenbein D, Lerner J. 2001. Links and hyperlinks: an empirical analysis of Internet portal alliances, 1995-1999. NBER working paper 8251.
30. Garicano L, Kaplan SN. 2000. The effects of business-to-business e-commerce on transaction costs. NBER working paper 8017.
31. Grant RM. 1996. Toward a knowledge-based theory of the firm. Strategic Management Journal, Winter Special Issue 17: 109-122.
32. Haleblian J, Finkelstein S. 1999. The influence of organizational acquisition experience on acquisition performance: a behavioral learning perspective. Administrative Science Quarterly 44: 29-56.
33. Hamel G. 2000. Waking up IBM. Harvard Business Review 78(4): 137-146.
34. Hamel G, Prahalad CK. 1996. Competing in the new economy: managing out of bounds. Strategic Management Journal 17(3): 237-242.
35. Harrison JR, Hitt MA, Hoskisson RE, Ireland RD. 1991. Synergies and post-acquisition performance: differences versus similarities in resource allocations. Journal of Management 17: 173-190.
36. Hayward MLA, Hambrick DC. 1997. Explaining the premiums paid for large acquisitions: evidence of CEO hubris. Administrative Science Quarterly 42: 103-127.
37. Hitt MA, Harrison JR, Ireland RD. 2001. Mergers and Acquisitions: A Guide to Creating Value for Stakeholders. Oxford University Press: New York.
38. Hitt MA, Hoskisson RE, Ireland RD. 1990. Mergers and acquisitions and managerial commitment to innovation in M-form firms. Strategic Management Journal, Special Issue 11: 29-47.
39. Itami H. 1987. Mobilizing Invisible Assets. Harvard University Press: Cambridge, MA.
40. Jensen MC. 1988. Takeovers: their causes and consequences. Journal of Economic Perspectives 1: 21-48.
41. Jensen MC, Ruback RS. 1983. The market for corporate control: the scientific evidence. Journal of Financial Economics 34: 5-50.
42. Jones GR, Hill CWL. 1988. Transaction cost analysis of strategy-structure choice. Strategic Management Journal 9(2): 159-172.
43. Kanter RM. 2001. E-Volve! Succeeding in the Digital Culture of Tomorrow. Harvard Business School Press: Boston, MA.
44. Karim S, Mitchell W. 2000. Path-dependent and path-breaking change: reconfiguring business resources following acquisitions in the U.S. medical sector, 1978-1995. Strategic Management Journal, Special Issue 21(10-11): 1061-1081.
45. Katz ML, Shapiro C. 1985. Network externalities, competition, and compatibility. American Economic Review 75: 424-440.
46. Katz ML, Shapiro C. 1986. Technology adoption in the presence of network externalities. Journal of Political Economy 94: 822-841.
47. King DR, Dalton DR, Daily CM, Covin J. 2004. Meta-analyses of post-acquisition performance: indicators of unidentified moderators. Strategic Management Journal 25(2): 187-200.
48. Kotha S, Rindova VP, Rothaermel FT. 2001. Assets and actions: firm-specific factors in the Intel-nationalization of U.S. Internet firms. Journal of International Business Studies 32(4): 769-791.
49. Lawler EE III. 2000. Rewarding Excellence: Pay Strategies for the New Economy. Jossey-Bass: San Francisco, CA.
50. Lee PM. 2001. What's in a name dot.com? The effects of '.com' name changes on stock prices and trading activity. Strategic Management Journal 22(8): 793-804.
51. Lei D, Hitt MA, Bettis RA. 1996. Dynamic core competences through meta-learning and strategic context. Journal of Management 22: 549-569.
52. Leonard-Barton D. 1992. Core capabilities and core rigidities: a paradox in managing new product development. Strategic Management Journal, Summer Special Issue 13: 111-125.
53. Levinthal DA, March JG. 1993. The myopia of learning. Strategic Management Journal, Winter Special Issue 14:95-112.
54. Levinthal DA, Siggelkow N. 2001. Linking the old and the new: modular and integrated adaptation to the Internet. Wharton School working paper.
55. Levitt B, March JG. 1988, Organizational learning. Annual Review of Sociology 14: 319-340.
56. Litan RE, Rivlin AM. 2001. Beyond the dot.coms; The Economic Promise of the Internet. Brookings Institution Press: Washington, DC.
57. Lubatkin M. 1987. Merger strategies and stockholder value. Strategic Management Journal 8(1): 39-53.
58. Lucas HC. 2002. Strategies for Electronic Commerce and the Internet. MIT Press: Cambridge, MA.
59. MacKinlay AC. 1997. Event studies in economics and finance. Journal of Economic Literature 35(1): 13-39.
60. Makadok R. 2001. Toward a synthesis of the resource-based and dynamic capability views of rent creation. Strategic Management Journal 22(5): 387-401.
61. McWilliams A, Siegel D. 1997. Event studies in management research: theoretical and empirical issues. Academy of Management Journal 40: 626-657.
62. Mikkelson WH, Partch MM. 1988. Withdrawn securities offerings. Journal of Financial and Quantitative Analysis 23(2): 119-134.
63. Montealegre R. 2002. A process model of capability development: lessons from the electronic commerce strategy at Bolsa de Valores de Guayaquil. Organization Science 13(5): 514-531.
64. Oxley JE, Yeung B. 2001. E-commerce readiness: institutional environment and international competitiveness, Journal of International Business Studies 32(4): 705-723.
65. Park NK, Mezias JM, Song J. 2004. A resource-based view of strategic alliances and firm value in the electronic marketplace. Journal of Management 30: 7-27.
66. Patell JM. 1976. Corporate forecasts of earnings per share and stock price behavior: the value of being 'too big to fail'. Journal of Accounting Research 14: 246-274.
67. Penrose ET. 1959. The Theory of the Growth of the Firm. Wiley: New York.
68. Peterson PP. 1989. Event studies: a review of issues and methodology. Quarterly Journal of Business and Economics 28(3): 36-66.
69. Porter ME. 1979. How competitive forces shape strategy. Harvard Business Review 57(2): 137-145.
70. Porter ME. 1996. What is strategy? Harvard Business Review 74(6): 61-78.
71. Porter ME. 2001. Strategy and the Internet. Harvard Business Review 79(3): 62-78.
72. Ranft AL, Lord MD. 2002. Acquiring new technologies and capabilities: a grounded model of acquisition implementation. Organization Science 13(4): 420-441.
73. Reichheld FF, Schefter P. 2000. E-loyalty: your secret weapon on the Web. Harvard Business Review 78(4): 105-113.
74. Rindova VP, Kotha S. 2001. Continuous 'morphing': competing through dynamic capabilities, form, and function. Academy of Management Journal 44(6): 1263-1280.
75. Scherer FM. 1980. Industrial Market Structure and Economic Performance. Prentice-Hall: Englewood Cliffs, NJ.
76. Schilling MA. 1998. Technological lockout: an integrative model of the economic and strategic factors driving technology success and failure. Academy of Management Review 23(2): 267-284.
77. Schilling MA. 2002. Technology success and failure in winner-take-all markets: the impact of learning orientation, timing, and network externalities. Academy of Management Journal 45(2): 387-398.
78. Scholes M, Williams JT. 1977. Estimating betas from nonsynchronous data. Journal of Financial Economics 5: 309-327.
79. Seth A. 1990. Sources of value creation in acquisitions: an empirical investigation. Strategic Management Journal 11(6): 431-446.
80. Shapiro C, Varian HR. 1999. Information Rules: A Strategic Guide to the Network Economy. Harvard Business School Press: Boston, MA.
81. Shepherd WG. 1979. The Economics of Industrial Organization. Prentice-Hall: Englewood Cliffs, NJ.
82. Singh H, Montgomery CA. 1987. Corporate acquisition strategies and economic performance. Strategic Management Journal 8(4): 377-386.
83. Sirower ML. 1997. The Synergy Trap: How Companies Lose the Acquisition Game. Free Press: New York.
84. Slywotzky AJ. 1996. Value Migration. Harvard Business School Press: Boston, MA.
85. Starbuck WH. 1976. Organizations and their environments. In Handbook of Industrial and Organizational Psychology, Dunnette MD (ed). Rand McNally: Chicago,'IL; 1069-1123.
86. Teece DJ, Pisano G, Shuen A. 1997. Dynamic capabilities and strategic management. Strategic Management Journal 18(7): 509-533.
87. Thurow LC. 1997. Needed: a new system of intellectual property rights. Harvard Business Review 75(5): 94-103.
88. Tjan AK. 2001. Finally, a way to put your Internet portfolio in order. Harvard Business Review 79(2): 76-85.
89. Vermeulen F, Barkema H. 2001. Learning through acquisitions. Academy of Management Journal 44: 457-476.
90. Williamson OE. 1975. Markets and Hierarchies: Analysis and Antitrust Implications. Free Press: New York.
91. Wiseman AE. 2000. Economic Issues: Economic Perspectives on the Internet. Federal Trade Commission: Washington, DC.
92. Woodall P. 2000a. Solving the paradox. Economist 23 September: S15-S25.
93. Woodall P. 2000b. Catch up if you can: Europe and Japan try to close the productivity gap. Economist 23 September: S40-S43.