Acquired, transferred and integrated knowledge: a study of M&A knowledge performance. Issue 3 (20th August 2018)

• Record Type: Journal Article
• Authors: Calipha, Rachel; Brock, David M.; Rosenfeld, Ahron; Dvir, Dov
• Is Part Of: Journal of strategy and management. Volume 11:Issue 3(2018)
• Page Start: 282
• Page End: 305
• Publication Date: 2018-08-20
• Subjects: Performance -- Acquired knowledge -- Integrated knowledge -- Knowledge measures -- M&A process -- Transferred knowledge; Management -- Periodicals; Strategic planning -- Periodicals; 658.401205
• DOI: 10.1108/JSMA-07-2017-0049
• Languages: English
• ISSNs: 1755-425X

Abstract

Abstract : Purpose: The acquisition of knowledge through mergers and acquisition (M&A) may not create value—usually because the knowledge may not be transferred, or transferred but not integrated. The purpose of this paper to develop and test a theoretical model of knowledge and performance in the M&A process. Design/methodology/approach: Theory, model and case analysis. Findings: The literature review led us to distinguish between three main categories of knowledge along the different stages of the M&A process: acquired knowledge in the pre-merger stage; and transferred knowledge and integrated knowledge in the post-merger stage. The application of the model is illustrated in a case study of technology M&A, which includes data collected from annual reports before and after the merger. Research limitations/implications: The model recommends acknowledging the differences between the acquired knowledge, transferred knowledge and integrated knowledge when examining the relationship between knowledge and performance in M&As. In addition, the model suggests considering several factors that influence future knowledge integration in the pre-merger stage. Ignoring the three categories and the factors may be the reason for the reports of previous studied stating that the acquisition of knowledge-based resources is associated with negative announcement returns to the acquiring firm. Originality/value: The paper presents new procedures to measure knowledge, collecting data on R&D employees by using annual reports. In addition, the paper suggests adding "in-process R&D" as an "Acquired Knowledge" measure.