Rivals’ Reactions to Mergers and Acquisitions

Authors

Klaus Uhlenbruck, EBS University of Business and Law
Margaret Hughes-Morgan, Marquette UniversityFollow
Michael A. Hitt, Texas A & M University - College StationFollow
Walter J. Ferrier, University of KentuckyFollow
Rhett Brymer, Miami University

Document Type

Article

Language

eng

Format of Original

27 p.

Publication Date

2016

Publisher

SAGE Publications

Source Publication

Strategic Organization

Source ISSN

1476-1270

Abstract

Mergers and acquisitions research has principally focused on attributes of the acquiring firm and post-acquisition outcomes. To extend our knowledge, we focus on external factors, in particular rival responses, and explore when and how rivals respond to their competitor’s acquisitions. Leveraging the awareness–motivation–capability framework, we predict and find evidence that a rival’s dependence on markets in common with the acquirer, resource similarity between rival and acquirer, and a rival’s organizational slack increase the volume and, in some cases, also the complexity of a rival’s competitive actions following an acquisition. Furthermore, the type of acquisition positively moderates some of these relationships. The results extend our understanding of the influence of mergers and acquisitions on competitive dynamics in the marketplace.

Comments

Accepted version. Strategic Organization, Vol. 15, No. 1 (2016): 40-66. DOI. © 2016 SAGE Publications. Used with permission.

Recommended Citation

Uhlenbruck, Klaus; Hughes-Morgan, Margaret; Hitt, Michael A.; Ferrier, Walter J.; and Brymer, Rhett, "Rivals’ Reactions to Mergers and Acquisitions" (2016). Management Faculty Research and Publications. 266.
https://epublications.marquette.edu/mgmt_fac/266