Do prior alliances with the target affect acquisition performance? the dangers of a honeymoon before marriage

Pierre Xavier Meschi, Emmanuel Metais, Katsuhiko Shimizu

研究成果: Conference contribution

抄録

This paper investigates whether the effect of pre-acquisition alliance between the acquirer and the target on subsequent acquisition performance is dependent on the duration of the pre-acquisition alliance. Our examination of the effects of pre-acquisition alliance duration on acquisition outcomes incorporates the concept of honeymoon period (Fichman & Levinthal, 1991). We hypothesize that an acquisition decision is vulnerable to bias and illusion if the decision is made during the honeymoon period of the pre-acquisition alliance. On the contrary, acquisition decisions made after the honeymoon period of pre-acquisition alliance is over reflect more exact information and a more sober understanding of the target. This hypothesis is examined in a panel database made up of acquisitions performed by French firms in the US between January 1988 and December 2006. We show that there is an inverted U-shaped relationship between the duration of pre-acquisition alliance and the probability of acquisition failure. Our results also highlight that the non-monotonic relationship between the duration of pre-acquisition alliance with the target and the probability of acquisition failure is moderated by the degree of partner commitment to the alliance.

本文言語English
ホスト出版物のタイトルAcademy of Management 2011 Annual Meeting - West Meets East: Enlightening. Balancing. Transcending, AOM 2011
出版社Academy of Management
DOI
出版ステータスPublished - 2011
イベント71st Annual Meeting of the Academy of Management - West Meets East: Enlightening, Balancing, Transcending, AOM 2011 - San Antonio, TX, United States
継続期間: 2011 8 122011 8 16

Other

Other71st Annual Meeting of the Academy of Management - West Meets East: Enlightening, Balancing, Transcending, AOM 2011
国/地域United States
CitySan Antonio, TX
Period11/8/1211/8/16

ASJC Scopus subject areas

  • 管理情報システム
  • 技術マネージメントおよび技術革新管理
  • 労使関係

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