4.3 Research and Development
(D. R. King, Slotegraaf, and Kesner 2008) Exploring Resource Interactions in Acquisitions and Firm Performance
Objective:
- Investigate the role of resource interactions between acquiring and target firms in determining post-acquisition performance.
Key Findings:
Average Acquisition Impact: Acquisitions, in general, do not automatically lead to higher firm performance.
Complementary Resources: Complementary resource profiles between target and acquiring firms can lead to positive abnormal returns.
Marketing-Technology Complementarity: If the acquiring firm has strong marketing resources and the target firm has robust technology resources, these tend to complement each other, leading to enhanced performance.
Technology-Technology Substitution: If both the acquiring and target firms have strong technology resources, they can substitute for each other, which may not yield the expected synergistic benefits and might even harm performance.