Knowing when to acquire: The case of multinational technology firms

Nir N. Brueller; Shmuel Ellis; Eli Segev; Abraham Carmeli

doi:10.1016/j.ibusrev.2014.06.006

Knowing when to acquire: The case of multinational technology firms

Nir N. Brueller, Shmuel Ellis, Eli Segev, Abraham Carmeli

Tel Aviv University

Research output: Contribution to journal › Article › peer-review

17 Scopus citations

Abstract

This study examines the effects of timing in high-tech acquisitions by analyzing how deviation from routines affects the value captured by the acquirer as well as the price paid. It examines the context of information and communication technology (ICT) acquisitions in which multinational technology incumbents are known to habitually acquire product-related capabilities to facilitate their entry into new product domains. The paper highlights the role of routines in managing technology acquisitions of multinationals, and tests the hypothesis that smaller deviations in terms of target-maturity and acquisition-timing lead to superior outcomes for acquirers. The findings indicate positive relationships between stricter iterations of routines and superior outcomes. The discussion centers on the theoretical implications of acquisition routines, timing and performance of multinational technology companies.

Original language	English
Pages (from-to)	1-10
Number of pages	10
Journal	International Business Review
Volume	24
Issue number	1
DOIs	https://doi.org/10.1016/j.ibusrev.2014.06.006
State	Published - 2015
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2014 Elsevier Ltd.

Funding

Financial support from the Samuel Neaman Institute for Advanced Studies in Science and Technology at the Technion, the Henry Crown Institute of Business Research in Israel and the Hurvitz Institute of Strategic Management at the Faculty of Management, Tel Aviv University is gratefully acknowledged. We wish to thank the editor and two anonymous reviewers of this journal for their constructive feedback. We also appreciate comments from Jay Bourgeois, John Haleblian, and seminar participants at INSEAD, University of Virginia, IE Madrid, Tel Aviv University, the IDC and the Technion on earlier drafts of this paper. All remaining errors or omissions are our own.

Funders	Funder number
Henry Crown Institute of Business Research in Israel
Hurvitz Institute of Strategic Management
Samuel Neaman Institute for Advanced Studies in Science and Technology
Tel Aviv University
Technion-Israel Institute of Technology

Keywords

Acquisition routines
Multinational companies
Organizational routines
Price
Target maturity
Timing and performance

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10.1016/j.ibusrev.2014.06.006

Cite this

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Knowing when to acquire: The case of multinational technology firms

Abstract

Bibliographical note

Funding

Keywords

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