Knowing when to acquire: The case of multinational technology firms

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

Research output: Contribution to journalArticlepeer-review

13 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 languageEnglish
Pages (from-to)1-10
Number of pages10
JournalInternational Business Review
Volume24
Issue number1
DOIs
StatePublished - 2015
Externally publishedYes

Bibliographical note

Funding Information:
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.

Publisher Copyright:
© 2014 Elsevier Ltd.

Keywords

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

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