TY - JOUR

T1 - Examining Links between Pre and Post M & A Value Creation Mechanisms d Exploitation, Exploration and Ambidexterity in Central European SMEs

AU - Bauer, Florian

AU - Strobl, Andreas

AU - Dao, Mai Anh

AU - Matzler, Kurt

AU - Rudolf, Nicole

N1 - This is the author’s version of a work that was accepted for publication in Long Range Planning. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Long Range Planning, 51, 2, 2018 DOI: 10.1016/j.lrp.2016.07.002

PY - 2018/4

Y1 - 2018/4

N2 - Value creation in acquisitions is a complex topic with divergent theoretical roots and mixed empirical evidence. In empirical research, the study of strategic fi t between an acquirer and target as an important indicator of synergy often yields ambiguous fi ndings, for two major reasons: the conceptualization of the fi t construct and that construct ’ s missing link with issues of post-merger integration. In this paper, we apply exploration and exploitation as different concepts of learning to conceptualize the strategic fi t among organizations involved. We do not draw a direct relationship regarding M & A performance, but instead treat the success of post-acquisition exploration and exploitation as a mediator in the fi t-performance relationship. With a sample of 101 acquisitions of small and medium-sized fi rms from the German-speaking part of Europe, we fi nd evidence for our proposed hypotheses. First, fi t regarding these two learning modes im- proves performance; second, a synergistic effect exists between exploration and exploitation; third, ambidextrous post-merger devel- opment in exploration and exploitation negatively affects M & A performance; and fourth, acquisition experience bene fi ts the transfer of pre-merger strategic fi t to the success of post-merger activity. Based on those fi ndings, we derive implications for theory and practice.

AB - Value creation in acquisitions is a complex topic with divergent theoretical roots and mixed empirical evidence. In empirical research, the study of strategic fi t between an acquirer and target as an important indicator of synergy often yields ambiguous fi ndings, for two major reasons: the conceptualization of the fi t construct and that construct ’ s missing link with issues of post-merger integration. In this paper, we apply exploration and exploitation as different concepts of learning to conceptualize the strategic fi t among organizations involved. We do not draw a direct relationship regarding M & A performance, but instead treat the success of post-acquisition exploration and exploitation as a mediator in the fi t-performance relationship. With a sample of 101 acquisitions of small and medium-sized fi rms from the German-speaking part of Europe, we fi nd evidence for our proposed hypotheses. First, fi t regarding these two learning modes im- proves performance; second, a synergistic effect exists between exploration and exploitation; third, ambidextrous post-merger devel- opment in exploration and exploitation negatively affects M & A performance; and fourth, acquisition experience bene fi ts the transfer of pre-merger strategic fi t to the success of post-merger activity. Based on those fi ndings, we derive implications for theory and practice.

U2 - 10.1016/j.lrp.2016.07.002

DO - 10.1016/j.lrp.2016.07.002

M3 - Journal article

VL - 51

SP - 185

EP - 203

JO - Long Range Planning

JF - Long Range Planning

SN - 0024-6301

IS - 2

ER -