IDEAS home Printed from https://ideas.repec.org/a/taf/acctbr/v46y2016i5p453-462.html
   My bibliography  Save this article

Strategies for M&As: when is acquisition the right mode to grow?

Author

Listed:
  • Laurence Capron

Abstract

This paper examines the conditions under which an acquisition makes sense compared with alternative modes of resource-sourcing such as internal development, licensing and alliances. Drawing on the transaction costs economics and capability views, it presents governance and knowledge reasons for choosing an acquisition over alternative modes of sourcing. While firms may have preferences for using M&A over alternatives, it is important to review and balance carefully the different resource-sourcing modes.

Suggested Citation

  • Laurence Capron, 2016. "Strategies for M&As: when is acquisition the right mode to grow?," Accounting and Business Research, Taylor & Francis Journals, vol. 46(5), pages 453-462, August.
    • Handle: RePEc:taf:acctbr:v:46:y:2016:i:5:p:453-462
    DOI: 10.1080/00014788.2016.1182705
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00014788.2016.1182705
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00014788.2016.1182705?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. Tomi Laamanen & Thomas Keil, 2008. "Performance of serial acquirers: toward an acquisition program perspective," Strategic Management Journal, Wiley Blackwell, vol. 29(6), pages 663-672, June.
    4. Laurence Capron & Will Mitchell, 2009. "Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal," Organization Science, INFORMS, vol. 20(2), pages 294-312, April.
    5. Kirk Monteverde & David J. Teece, 1982. "Supplier Switching Costs and Vertical Integration in the Automobile Industry," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 206-213, Spring.
    6. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    7. Melissa A. Schilling & Patricia Vidal & Robert E. Ployhart & Alexandre Marangoni, 2003. "Learning by Doing Something Else: Variation, Relatedness, and the Learning Curve," Management Science, INFORMS, vol. 49(1), pages 39-56, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nghona, Xolani, 2021. "From one dominant growth mode to another : Switching between strategic expansion modes," Other publications TiSEM 8331633d-0e6f-4cc8-8b22-a, Tilburg University, School of Economics and Management.
    2. Andrei Filip & Gerald J. Lobo & Luc Paugam & Hervé Stolowy, 2022. "Disclosures About Key Value Drivers in M&A Announcement Press Releases: An Exploratory Study," Abacus, Accounting Foundation, University of Sydney, vol. 58(1), pages 62-104, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pamela Adams & Roberto Fontana & Franco Malerba, 2022. "Knowledge resources and the acquisition of spinouts," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 277-313, June.
    2. Laurence Capron & Will Mitchell, 2009. "Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal," Organization Science, INFORMS, vol. 20(2), pages 294-312, April.
    3. Lihong Qian & Rajshree Agarwal & Glenn Hoetker, 2012. "Configuration of Value Chain Activities: The Effect of Pre-Entry Capabilities, Transaction Hazards, and Industry Evolution on Decisions to Internalize," Organization Science, INFORMS, vol. 23(5), pages 1330-1349, October.
    4. Reha Karadag & Laura Poppo, 2023. "Strategic resource decay," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1534-1561, June.
    5. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    6. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    7. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    8. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    9. Zhang, Jing & Baden-Fuller, Charles & Mangematin, Vincent, 2007. "Technological knowledge base, R&D organization structure and alliance formation: Evidence from the biopharmaceutical industry," Research Policy, Elsevier, vol. 36(4), pages 515-528, May.
    10. Kirsten Burkhardt, 2011. "Le rôle des sociétés de capital-risque dans la formation d’alliances stratégiques:Une synthèse de littérature - The Role of Venture Capitalists in the Formation of Strategic Alliances:An academic lite," Working Papers CREGO 1111102, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
    11. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    12. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    13. Haeussler, Carolin & Patzelt, Holger & Zahra, Shaker A., 2012. "Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities," Journal of Business Venturing, Elsevier, vol. 27(2), pages 217-233.
    14. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    15. Kim, Sung Min & Mahoney, Joseph T., 2008. "Resource Co-specialization, Firm Growth, and Organizational Performance: An Empirical Analysis of Organizational Restructuring and IT Implementations," Working Papers 08-0107, University of Illinois at Urbana-Champaign, College of Business.
    16. Sobrero, Maurizio & Roberts, Edward B., 2002. "Strategic management of supplier-manufacturer relations in new product development," Research Policy, Elsevier, vol. 31(1), pages 159-182, January.
    17. Capaldo, Antonio & Messeni Petruzzelli, Antonio, 2011. "In search of alliance-level relational capabilities: Balancing innovation value creation and appropriability in R&D alliances," Scandinavian Journal of Management, Elsevier, vol. 27(3), pages 273-286, September.
    18. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    19. Ioannis Ioannou, 2014. "When Do Spinouts Enhance Parent Firm Performance? Evidence from the U.S. Automobile Industry, 1890–1986," Organization Science, INFORMS, vol. 25(2), pages 529-551, April.
    20. Satish Nambisan & Shaker A. Zahra & Yadong Luo, 2019. "Global platforms and ecosystems: Implications for international business theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1464-1486, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acctbr:v:46:y:2016:i:5:p:453-462. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RABR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.