Post-acquisition implementation of small high-tech firms: Looking beyond the surface
(English)Manuscript (preprint) (Other academic)
In post-acquisition, the main challenge for the acquirer is choosing the right coordination mechanism with respect to the required level of coordination and associated costs of implementation of the mechanism. In acquisition of small high-tech firms, the challenge is exacerbated as technology and knowledge transfer requires high level of coordination while the costs related such as loss of autonomy and organizational disruptions are also higher. In this paper, we showed that acquirer’s choice of coordination mechanisms is determined by the cost-benefit trade-off. In particular, we found that, component technology as a form of task interdependency necessitates higher level of coordination and justifies choosing mechanisms to provide high level of coordination at higher cost. On the contrary, technological relatedness and prior alliance between acquirer and target provide coordination capacity, which in turn reduce the benefits of choosing mechanisms to provide high level of coordination with respect to the associated costs. This study is based on empirical analysis of 403 acquisitions of small high-tech firms between 2001 and 2005.
IdentifiersURN: urn:nbn:se:kth:diva-176413OAI: oai:DiVA.org:kth-176413DiVA: diva2:866813
QS 20152015-11-032015-11-032015-11-12Bibliographically approved