Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms
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INFORMS (Institute for Operations Research and Management Sciences)
Original Item ID
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.
King, David R.; Slotegraaf, Rebecca J.; and Kesner, Idalene, "Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms" (2008). Management Faculty Research and Publications. 38.
Published version. Organization Science, Volume 19, No. 2 (March-April 2008), DOI. © 2008 INFORMS (Institute for Operations Research and Management Sciences). Used with permission.
David R. King was affiliated with the U.S. Air Force, Wright-Patterson AFB at the time of publication.