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Indiana University Bloomington

Doctoral Programs

1960 Notable

From 1960-2013, we prepared nearly 1,200 men and women
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Journal Articles

Performance Implications of Firm Resource Interactions in the Acquisition of R&D Intensive Firms

2008, Organization Science

David R. King, Rebecca J. Slotegraaf, Idalene Kesner

Abstract

We explore the role of resource interactions in explaining firm performance in the context of acquisitions. While we confirm that acquisitions do not lead to higher performance on average, we do identify that complementary resource profiles in target and acquiring firms are associated with abnormal returns. Specifically, we find that the interaction between acquiring firm marketing resources and target firm technology resources positively reinforce (complement) each other. Meanwhile, the interaction of acquiring and target firm technology resources negatively reinforce (substitute) one another. Implications for management theory and practice are identified.

Citation

King, David R., Rebecca J. Slotegraaf, and Idalene Kesner (2008), "Performance Implications of Firm Resource Interactions in the Acquisition of R&D Intensive Firms," Organization Science, Vol. 19, No. 2, pp. 327-340.

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