Antecedents of M&A success: The role of strategic complementarity, cultural fit, and degree and speed of integration

Strategic Management Journal

Volumn 35, Issue 2, 2014, Pages 269-291

  Bauer, Florian ^a   Matzler, Kurt ^b  

^a MANAGEMENT CENTER INNSBRUCK   (Austria)

^b UNIVERSITY OF INNSBRUCK   (Austria)

Author keywords

cultural compatibility; M A; M A success; post merger integration; strategic complementarity

Indexed keywords

CENTRAL EUROPE; COMPREHENSIVE MODEL; CULTURAL COMPATIBILITY; CULTURAL FITS; LOGISTIC INDUSTRY; POST-MERGER INTEGRATIONS; STRATEGIC COMPLEMENTARITY; THEORETICAL FRAMEWORK;

MANAGEMENT; PLANNING;

MACHINERY;

EID: 84891751223     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.2091     Document Type: Article

References (134)

1. Agarwal R, Karahanna E,. 2000. Time flies when you're having fun: cognitive absorption and beliefs about information technology usage. MIS Quarterly 24 (4): 665-694.
2. Aguilera RV, Dencker JC,. 2004. The role of human resource management in cross-border mergers and acquisitions. International Journal of Human Resource Management 15 (8): 1355-1370.
3. Aktas N, de Bodt E, Cousin J-G,. 2007. Event studies with a contaminated estimation period. Journal of Corporate Finance 13 (1): 129-145.
4. Angwin D,. 2004. Speed in M&A integration: the first 100 days. European Management Journal 22 (4): 418-430.
5. Appelbaum SH, Gandell J, Yortis H, Proper S, Jobin F,. 2000. Anatomy of a merger: behaviour of organizational factors and processes throughout the pre-during-post-stages (part 1). Management Decision 38 (9): 649-661.
6. Armstrong SJ, Overton TS,. 1977. Estimating nonresponse bias in mail surveys. Journal of Marketing Research 14: 396-402.
7. Ashkenas RN, DeMonaco LJ, Francis SC,. 1998. Making the deal real: how GE capital integrates acquisitions. Harvard Business Review 76 (1): 165-175.
8. Avram D, Kühne S,. 2008. Implementing responsible business behavior from a strategic management perspective: developing a framework for Austrian SMEs. Journal of Business Ethics 82 (2): 463-475.
9. Bagchi P, Rao RP,. 1992. Decision making in mergers: an application of the analytic hierarchy process. Managerial and Decision Economics 13 (2): 91-99.
10. Barkema HG, Bell JHJ, Pennings JM,. 1996. Foreign entry, cultural barriers, and learning. Strategic Management Journal 17: 151-166.
11. Barkema HG, Schijven M,. 2008. How do firms learn to make acquisitions? A review of past research and an agenda for the future. Journal of Management 34 (3): 594-634.
12. Basu S, Hwang L, Jan C-L,. 1998. International variation in accounting measurement rules and analysts' earnings forecast errors. Journal of Business Finance and Accounting 25 (9-10): 1207-1247.
13. Becker DR,. 2005. Ressourcen-Fit bei M&A-Transaktionen- Konzeptualisierung, Operationalisierung und Erfolgswirkung auf Basis des Resource-based View. Gabler: Wiesbaden, Germany.
14. Berdie DR, Anderson JF,. 1976. Mail questionnaire response rates: updating outmoded thinking. Journal of Marketing 40 (1): 71-73.
15. Bijlsma-Frankema K,. 2001. On managing cultural integration and cultural change processes in mergers and acquisitions. Journal of European Industrial Training 25 (2/3/4): 192-207.
16. Bijlsma-Frankema K,. 2004. Dilemmas of managerial control in post-acquisition processes. Journal of Managerial Psychology 19 (3): 252-268.
17. Birkinshaw J, Bresman H, Håkanson L,. 2000. Managing the post-acquisition integration process: How the human iintegration and task integration processes interact to foster value creation. Journal of Management Studies 37 (3): 395-425.
18. Bower JL,. 2001. Not all M&As are alike-and that matters. Harvard Business Review 79: 92-102.
19. Bragado JF,. 1992. Setting the correct speed for postmerger integration. M&A Europe 5: 24-31.
20. Buono AF, Bowditch JL,. 2003. The Human Side of Mergers and Acquisitions-Managing Collisions between People, Cultures and Organizations. Beard Books: Washington, DC.
21. Burt RS,. 1973. Confirmatory factor-analytic structures and the theory construction process. Sociological Methods and Research 2 (2): 131-190.
22. Cannella AA, Hambrick DC,. 1993. Effects of executive departures on the performance of acquired firms. Strategic Management Journal 14 (S1): 137-152.
23. Capasso A, Meglio O,. 2005. Knowledge transfer in mergers and acquisitions: how frequent acquirers learn to manage the integration process. In Strategic Capabilities and Knowledge Transfer within and between Orginizations, Capasso A, Dagnino GB, Lanza A, (eds). Edgar Elgar Publishing: Northampton, MA; 199-225.
24. Capron L, Mitchell W,. 1998. Bilateral resource redeployment and capabilities improvement following horizontal acquisitions. Industrial and Corporate Change 7 (3): 453-484.
25. Capron L, Mitchell W, Swaminathan A,. 2001. Asset divestiture following horizontal acquisitions: a dynamic view. Strategic Management Journal 22 (9): 817-844.
26. Cartwright S,. 2006. Mergers and acquisitions: an update and appraisal. In International Review of Industrial and Organizational Psychology 2005 20: 1-38.
27. Cartwright S, Cooper GL,. 2001. Managing Mergers, Acquisitions and Strategic Alliances-Integrating People and Cultures. Butterworth-Heinemann: Oxford, UK.
28. Cartwright S, Schoenberg R,. 2006. Thirty years of mergers and acquisitions research: recent advances and future opportunities. British Journal of Management 17 (S1): S1-S5.
29. Chase B,. 1998. National City's latest mergers put premium on fast execution. American Banker 163: 3-4.
30. Chatterjee S,. 2009. The keys to successful acquisition programmes. Long Range Planning 42 (2): 137-163.
31. Chatterjee S, Lubatkin MH, Schweiger DM, Weber Y,. 1992. Cultural differences and shareholder value in related mergers: linking equity and human capital. Strategic Management Journal 13 (5): 319-334.
32. Christensen CM, Alton R, Rising C, Waldeck A,. 2011. The big idea: the new M&A playbook. Harvard Business Review 89: 48-57.
33. Churchill GA,. 1995. Marketing Research: Methodological Foundations (6th edn). Fort North, Dryden Press: New York.
34. Cording M, Christmann P, King D,. 2008. Reducing causal ambiguity in acquisition integration: intermediate goals as mediators of integration decisions and acquisition performance. Academy of Management Journal 51 (4): 744-767.
35. Datta DK,. 1991. Organizational fit and acquisition performance: effects of post-acquisition integration. Strategic Management Journal 12 (4): 281-297.
36. Delios A, Beamish PW,. 1999. Ownership strategy of Japanese firms: transactional, institutional, and experience influences. Strategic Management Journal 20 (10): 915-933.
37. Dillman DA,. 2000. Mail and Internet Surveys: The Tailored Design Method (2nd edn). Wiley: New York.
38. Dixon Wilcox H, Chang K-C, Grover V,. 2001. Valuation of mergers and acquisitions in the telecommunications industry: a study on diversification and firm size. Information Management 38 (7): 459-471.
39. Ellis KM, Reus TH, Lamont BT,. 2009. The effects of procedural and informational justice in the integration of related acquisitions. Strategic Management Journal 30 (2): 137-161.
40. Elsass PM, Veiga JF,. 1994. Acculturation in acquired organizations: a force-field perspective. Human Relations 47 (4): 431-453.
41. Fornell C, Bookstein F,. 1982. Two structural equations models: LISREL and PLS applied to consumer exit-voice theory. Journal of Marketing Research 18: 39-50.
42. Fornell C, Larcker DF,. 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18: 39-50.
43. Fornell C, Yi Y,. 1992. Assumptions of the two-step approach to latent variable modeling. Sociological Methods and Research 20 (3): 291-320.
44. Fowler KL, Schmidt DR,. 1989. Determinants of tender offer post-acquisition financial performance. Strategic Management Journal 10 (4): 339-350.
45. Gaur AS, Lu JW,. 2007. Ownership strategies and survival of foreign subsidiaries: impacts of institutional distance and experience. Journal of Management 33 (1): 84-110.
46. Gerpott TJ,. 1995. Successful integration of R&D functions after acquisitions: an exploratory empirical study. R&D Management 25: 161-178.
47. Golden BR,. 1992. The past is the past - or is it? The use of retrospective accounts as indicators of past strategy. Academy of Management Journal 35 (4): 848-860.
48. Gorsuch RL,. 1983. Factor Analysis (2nd edn). Erlbaum: Hillsdale, MI.
49. Haenlein M, Kaplan AM,. 2004. A beginner's guide to partial least squares analysis. Understanding Statistics 3 (4): 283-297.
50. Haleblian J, Devers CE, McNamara G, Carpenter MA, Davison RB,. 2009. Taking stock of what we know about mergers and acquisitions: a review and research agenda. Journal of Management 35 (3): 469-502.
51. Haleblian J, Finkelstein S,. 1999. The influence of organizational acquisition experience on acquisition performance: a behavioral learning perspective. Administrative Science Quarterly 44 (1): 29-56.
52. Haleblian J, Kim J-Y, Rajagopalan N,. 2006. The influence of acquisition experience and performance on acquisition behavior: evidence from the U.S. commercial banking industry. Academy of Management Journal 49 (2): 357-370.
53. Harrison JS, Hitt MA, Hoskisson RE, Ireland RD,. 1991. Synergies and post-acquisition performance: differences versus similarities in resource allocations. Journal of Management 17 (1): 173-190.
54. Haspeslagh P, Jemison DB,. 1991. Managing Acquisitions. The Free Press: New York.
55. Hassan M, Patro DK, Tuckman H, Wang X,. 2007. Do mergers and acquisitions create shareholder wealth in the pharmaceutical industry. International Journal of Pharmaceutical and Healthcare Marketing 1 (1): 58-79.
56. Hayward ML,. 2002. When do firms learn from their acquisition experience? Evidence from 1990-1995. Strategic Management Journal 23: 21-39.
57. Helfat CE,. 1997. Know-how and asset complementarity and dynamic capability accumulation: the case of R&D. Strategic Management Journal 18 (5): 339-360.
58. Hofstede G,. 1991. Cultures and Organizations: Software of the Mind. McGraw Hill: New York.
59. Homburg C, Bucerius M,. 2005. A marketing perspective on mergers and acquisitions: how marketing integration affects postmerger performance. Journal of Marketing 69 (1): 95-113.
60. Homburg C, Bucerius M,. 2006. Is speed of integration really a success factor of mergers and acquisitions? An analysis of the role of internal and external relatedness. Strategic Management Journal 27: 347-367.
61. Hulland J,. 1999. Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal 20 (2): 195-204.
62. Inkpen AC,. 2000. Learning through joint ventures: a framework of knowledge acquisition. Journal of Management Studies 37 (7): 1019-1044.
63. Inkpen JR, McClelland GH, Rockwood K,. 2000. Cross-border acquisitions of U.S. technology assets. California Management Review 42: 50-71.
64. Jansen SA,. 2008. Mergers & Acquisitions (3rd edn). Gabler: Wiesbaden, Germany.
65. Jemison DB, Sitkin SB,. 1986. Corporate acquisitions: a process perspective. Academy of Management Review 11 (1): 145-163.
66. Jensen MC, Ruback RS,. 1983. The market for corporate control: the scientific evidence. Journal of Financial Economics 11 (1-4): 5-50.
67. Jensen MC,. 1988. Takeovers; their causes and consecquences. Journal of Economic Perspectives 2 (1): 21-48.
68. Johnson P,. 2007. The Economics of Small Firms: An Introduction. Routledge: London, UK.
69. Jöns I, Froese FJ, Pak YS,. 2007. Cultural changes during the integration process of acquisitions: a comparative study between German and German-Korean acquisitions. International Journal of Intercultural Relations 31 (5): 591-604.
70. Jöns I, Hodapp M, Weiss K,. 2005. Kurzskala zur Erfassung der Unternehmenskultur. Mannheimer Beiträge zur Wirtschafts- und Organisationspsychologie 1: 3-10.
71. Karim S,. 2006. Modularity in organizational structure: the reconfiguration of internally developed and acquired business units. Strategic Management Journal 27 (9): 799-823.
72. Kim J-Y, Finkelstein S,. 2009. The effects of strategic and market complementarity on acquisition performance: evidence from the U.S. commercial banking industry, 1989-2001. Strategic Management Journal 30 (6): 617-646.
73. King DR, Dalton DR, Daily CM, Covin JG,. 2004. Meta-analyses of post-acquisition performance: indicatiosn of unidentified moderators. Strategic Management Journal 25: 187-200.
74. King DR, Slotegraaf RJ, Kesner I,. 2008. Performance implications of firm resource interactions in the acquisition of R&D-intensive firms. Organization Science 19 (2): 327-340.
75. Kostova T,. 1999. Transnational transfer of strategic organizational practices: a contextual perspective. Academy of Management Review 24 (2): 308-324.
76. Kostova T, Roth K, Dacin M,. 2008. Note: institutional theory in the study of multinational corporations: a critique and new directions. Academy of Management Review ARCHIVE 33 (4): 994-1006.
77. Krishnan HA, Miller A, Judge WQ,. 1997. Diversification and top management team complementarity: is performance improved by merging similar or dissimilar teams? Strategic Management Journal 18 (5): 361-374.
78. Kusewitt JB,. 1985. An exploratory study of strategic acquisition factors relating to performance. Strategic Management Journal 6 (2): 151-169.
79. Laamanen T, Keil T,. 2008. Performance of serial acquirers: toward an acquisition program perspective. Strategic Management Journal 29: 663-672.
80. Larsson R, Finkelstein S,. 1999. Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: a case survey of synergy realization. Organization Science 10 (1): 1-26.
81. Larsson R, Lubatkin M,. 2001. Achieving acculturation in mergers and acquisitions: an international case survey. Human Relations 54 (12): 1573-1607.
82. Leiblein MJ,. 2003. The choice of organizational governance form and performance: predictions from transaction cost, resource-based, and real options theories. Journal of Management 29 (6): 937-961.
83. Leuz C, Nanda D, Wysocki PD,. 2003. Earnings management and investor protection: an international comparison. Journal of Financial Economics 69 (3): 505-527.
84. Liang H, Saraf N, Hu Q, Xue Y,. 2007. Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Quarterly 31 (1): 59-87.
85. Lodorfos G, Boateng A,. 2006. The role of culture in the merger and acquisition process: evidence from the European chemical industry. Management Decision 44 (10): 1405-1421.
86. Lohmöller J-B,. 1989. Latent Variable Path Modeling with Partial Least Squares. Physica Verlag: Hamburg, Germany.
87. Makri M, Hitt MA, Lane PJ,. 2010. Complementary technologies, knowledge relatedness, and invention outcomes in high technology mergers and acquisitions. Strategic Management Journal 31 (6): 602-628.
88. Mandelker G,. 1974. Risk and return: the case of merging firms. Journal of Financial Economics 1 (4): 303-335.
89. Meyer CB, Altenborg E,. 2008. Incompatible strategies in international mergers: the failed merger between Telia and Telenor. Journal of International Business Studies 39 (3): 508-525.
90. Muehlfeld K, Rao Sahib P, Van Witteloostuijn A,. 2012. A contextual theory of organizational learning from failures and successes: a study of acquisition completion in the global newspaper industry, 1981-2008. Strategic Management Journal 33 (8): 938-964.
91. Nguyen H, Kleiner BH,. 2003. The effective management of mergers. Leadership and Organization Development Journal 24 (8): 447-454.
92. Olie R,. 1994. Shades of culture and institutions-in international mergers. Organization Studies 15 (3): 381-405.
93. Pablo AL,. 1994. Determinants of acquisition integration level: a decision-making perspective. Academy of Management Journal 37 (4): 803-836.
94. Palich LE, Cardinal LB, Miller CC,. 2000. Curvilinearity in the diversification-performance linkage: an examination of over three decades of research. Strategic Management Journal 21 (2): 155-174.
95. Pehrsson A,. 2006. Business relatedness and performance: a study of managerial perceptions. Strategic Management Journal 27 (3): 265-282.
96. Podsakoff PM, MacKenzie SB, Lee J-Y, Podsakoff NP,. 2003. Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology 88 (5): 879-903.
97. Podsakoff PM, Organ DW,. 1986. Self-reports in organizational research: problems and prospects. Journal of Management 12 (4): 531-544.
98. Prabhu JC, Chandy RK, Ellis ME,. 2005. The impact of acquisitions on innovation: poison pill, placebo, or tonic? Journal of Marketing 69 (1): 114-130.
99. Puranam P, Singh H, Chaudhuri S,. 2009. Integrating acquired capabilities: when structural integration is (Un)necessary. Organization Science 20 (2): 313-328.
100. Ranft AL, Lord MD,. 2002. Acquiring new technologies and capabilities: a grounded model of acquisition implementation. Organization Science 13 (4): 420-441.
101. Reinartz W, Krafft M, Hoyer WD,. 2004. The customer relationship management process: its measurement and impact on performance. Journal of Marketing Research 41: 293-305.
102. Reus TH, Lamont BT,. 2009. The double-edged sword of cultural distance in international acquisitions. Journal of International Business Studies 40 (8): 1298-1316.
103. Ringle CM, Wende S, Will A,. 2005. SmartPLS. Hamburg, Germany.
104. Robins J, Wiersema MF,. 1995. A resource-based approach to the multibusiness firm: empirical analysis of portfolio interrelationships and corporate financial performance. Strategic Management Journal 16 (4): 277-299.
105. Rowlinson M,. 1995. Strategy, structure and culture: cadbury, divisionalizsation and merger in the 1960s. Journal of Management Studies 32 (2): 121-140.
106. Salvato C, Lassin U, Wiklund J,. 2007. Dynamics of external growth in SMEs: a process model of acquisition capabilities emergence. Schmalenbach Business Review 59: 282-305.
107. Sarkar M, Echambadi R, Cavusgil ST, Aulakh PS,. 2001. The influence of complementarity, compatibility, and relationship capital on alliance performance. Journal of the Academy of Marketing Science 29 (4): 358-373.
108. Schein E,. 1985. Organizational Culture and Leadership. Jossey-Bass: San Francisco, CA.
109. Schewe G, Lohre S, Ortwein G,. 2007. Post merger integration-Welchen Erklärungsbeitrag liefern unterschiedliche Denkschulen. Zeitschrift Führung+Organisation 76 (5): 252-259.
110. Schneider S, Barsoux J-L,. 1997. Managing Across Cultures. Prentice-Hall: London, UK.
111. Schraeder M, Self DR,. 2003. Enhancing the success of mergers and acquisitions: an organizational culture perspective. Management Decision 41 (5): 511-522.
112. Seth A,. 1990. Value creation in acquisitions: A re-examination of performance issues. Strategic Management Journal 11 (2): 99-115.
113. Shelton LM,. 1988. Strategic business fits and corporate acquisition: empirical evidence. Strategic Management Journal 9 (3): 279-287.
114. Shrivastava P,. 1986. Postmerger integration. iJournal of Business Strategy 7 (1): 65-76.
115. Singh H, Montgomery CA,. 1987. Corporate acquisition strategies and economic performance. Strategic Management Journal 8 (4): 377-386.
116. Slangen AHL,. 2006. National cultural distance and initial foreign acquisition performance: the moderating effect of integration. Journal of World Business 41 (2): 161-170.
117. Stahl GK, Voigt A,. 2008. Do cultural differences matter in mergers and acquisitions? A tentative model and examination. Organization Science 19 (1): 160-176.
118. Stimpert JL, Duhaime IM,. 1997. In the eyes of the beholder: conceptualization of relatedness held by the managers of larger diversified firms. Strategic Management Journal 18 (2): 111-125.
119. Swaminathan V, Murshed F, Hulland J,. 2008. Value creation following merger and acquisition announcements: the role of strategic emphasis alignment. Journal of Marketing Research 45 (1): 33-47.
120. Tanriverdi H, Venkatraman N,. 2005. Knowledge relatedness and the performance of multibusiness firms. Strategic Management Journal 26 (2): 97-119.
121. Teerikangas S, Very P,. 2006. The culture-performance relationship in M&A; From Yes/No to How. British Journal of Management 17: 31-48.
122. Tenenhaus M, Vinzi VE, Chatelin Y-M, Lauro C,. 2005. PLS path modeling. Computational Statistics and Data Analysis 48 (1): 159-205.
123. Uhlenbruck K, Hitt MA, Semadeni M,. 2006. Market value effects of acquisitions involving internet firms: a resource-based analysis. Strategic Management Journal 27: 899-913.
124. Vanhaverbeke W, Duysters G, Noorderhaven N,. 2002. External technology sourcing through alliances or acquisitions: an analysis of the application-specific integrated circuits industry. Organization Science 13 (6): 714-733.
125. Vilares MJ, Almeida MH, Coelho PS,. 2010. Comparison of likelihood and PLS estimators for structural equation modeling: a simulation with customer satisfaction data. In Handbook of Partial Least Squares, Esposito Vinzi V, Chin WW, Henseler J, Wang H, (eds). Springer: Berlin and Heidelberg; 289-305.
126. Walsh JP,. 1988. Top management turnover following mergers and acquisitions. Strategic Management Journal 9 (2): 173-183.
127. Wang L, Zajac EJ,. 2007. Alliance or acquisition? A dyadic perspective on interfirm resource combinations. Strategic Management Journal 28 (13): 1291-1317.
128. Weetman P, Gray SJ,. 1991. A comparative international analysis of the impact of accounting principles on profits: the USA versus the UK, Sweden and The Netherlands. Accounting and Business Research 21 (84): 363-379.
129. Weitzel U, McCarthy KJ,. 2011. Theory and evidence on mergers and acquisitions by small and medium enterprises. International Journal of Entrepreneurship and Innovation Management 14 (2): 248-275.
130. Wetzels M, Odekerken-Schröder G, van Oppen C,. 2009. Using PLS path modeling for assessing hierarchical construct models: guidelines and empirical illustration. MIS Quarterly 33 (1): 177-195.
131. Wright P, Kroll M, Lado A, Van Ness B,. 2002. The structure of ownership and corporate acquisition strategies. Strategic Management Journal 23: 41-53.
132. Xu D, Shenkar O,. 2002. Institutional distance and the multinational enterprise. Academy of Management Review 27 (4): 608-618.
133. Zollo M, Meier D,. 2008. What is M&A performance? Academy of Management Perspectives ARCHIVE 22 (3): 55-77.
134. Zollo M, Singh H,. 2004. Deliberate learning in corporate acquisitions: post-acquisition strategies and integration capability in U.S. bank mergers. Strategic Management Journal 25: 1233-1256.