Document Type

Article

Language

eng

Format of Original

14 p.

Publication Date

3-2008

Publisher

INFORMS (Institute for Operations Research and Management Sciences)

Source Publication

Organization Science

Source ISSN

1047-7040

Original Item ID

doi: 10.1287/orsc.1070.0313

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.

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